Monday, April 30, 2012
YRC Worldwide Announces Agreement with 100 Percent of Its Lenders
Agreement Provides Years of Additional Financial Flexibility
YRC Worldwide Inc. today announced that it has reached an agreement with its lenders to reset certain financial covenants over the life of the loans and allow the company to retain all proceeds from the auction of certain surplus properties. The amendments were supported by 100 percent of its Term Credit Agreement lenders and 100 percent of its ABL Credit Agreement lenders.
James Welch, chief executive officer of YRC Worldwide said, "When YRCW's new leadership team was put in place last year, we refocused the company on its core strengths to position the business as a respected industry leader in the North American less-than-truckload (LTL) shipping industry. The new leadership team developed a strategy and business plan, including updated forecasts focused on reinvesting in the quality of the service we provide, and we have successfully executed against both our qualitative and quantitative objectives. To date, we are pleased to have exceeded our forecast and to have reached this agreement with our lenders, which will allow us to continue building on our current momentum and successes."
"Today, YRCW has the financial flexibility needed to support our growth strategies and to continue gaining market share. Thanks to the company's talented and dedicated workforce, comprised of 32,000 of the best freight professionals in the industry, we are achieving operational improvements, increasing profitability and better serving our customers," Welch concluded.
"We appreciate the support of our lenders and believe that these amendments affirm their confidence in our ongoing initiatives, their trust in the leadership and the future of YRCW," said Jamie Pierson, chief financial officer of YRC Worldwide." Pierson continued, "Over the last several quarters — while strengthening our liquidity position and sharpening our focus on the North American LTL shipping market — we have announced the dispositions of our truckload subsidiary and a significant portion of our excess real estate as well as the divestiture of one of our Chinese joint ventures. This agreement and unanimous support of all of our senior lenders is a testament not only to what we have done but also to what we are doing. Now, it is time to return this company to the prominence and pride that it once held as the most revered company in the industry."