Asset-Based Lending Facility Important Element in Maintaining Operational Liquidity
Teamsters General President Hoffa and The Teamsters National Freight Industry Negotiating Committee are pleased to announce further positive momentum in the restructuring plan to protect 25,000 Teamster freight jobs at YRC Worldwide, Inc.
TNFINC, along with lenders and YRCW, has approved final terms for an asset-based lending facility, which will provide part of the necessary ongoing operational liquidity for the company. The placement of this facility is a key component of the restructuring and pre-condition to closing the transaction. As a result of finalizing the terms of the facility, YRCW filed an amended Form S-1 with the SEC earlier today.
"The approval of this facility is another important step in the restructuring process which we are pleased to have completed. We now are nearing the finish line on this important transaction that will help save 25,000 Teamster jobs at YRCW," Hoffa said. "We are encouraged by the continued support of the company's existing lender group and advisors to help push towards closing the transaction and maintain the positive momentum that YRCW and its employees have worked for over the last 2 years."
The asset-based facilities, agreed to following extensive review of financing options by the International Brotherhood of Teamsters and its advisors, will provide maximum liquidity and flexibility for operations going forward, with a structure to help put the company in a much stronger financial and operational position.
As previously stated in the Teamsters' February 28 and April 29 press releases, the restructuring will help address key provisions of the Restructuring Plan/MOU by providing significant liquidity to YRCW, including $100 million of new capital and increased liquidity from the new asset-based lending facilities. Additionally, the restructuring will reduce company debt in the future to help pave the way for a healthier YRCW going forward.
Pending the union's continued review and support of negotiations and documentation, the transaction remains on track to close no later than July 22 as previously announced.
"Throughout the negotiation process, we have fought to protect our members' jobs and benefits," said Tyson Johnson, Director of the Teamsters National Freight Division and International Vice President. "General President Hoffa and I are heartened by YRCW's progress operationally and in the transaction. We will continue to work with our freight members to help push the restructuring to close."