Tuesday, August 01, 2017
YRC Worldwide Completes the Amendment to Extend Term Loan
"As our financial performance has improved in recent years, we reduced our debt to the lowest level in more than a decade while at the same time reinvesting back into the Company," said James Welch, chief executive officer of YRC Worldwide. "Extending the term loan is an important step as we continue to position the Company for long-term success. We believe it is prudent to take the refinancing risk off the table before the term loan matured in early 2019, to focus on executing operationally and improving our financial results. We plan to continue evaluating additional opportunities to strengthen the Company for our customers, employees and investors," concluded Welch.
In addition to the extended maturity, the most substantial changes as a result of the amendment are:
A reduction of the outstanding principal to $600 million following a $35.2 million payment at the time of closing the amendment;
An increase in the annual amortization from 1% ($7 million) to 3% ($18 million);
An increase in the interest rate from LIBOR + 750 basis points to LIBOR + 850 basis points; and
If the Company's Contribution Deferral Agreement notes are not extended to at least late October 2022, the term loan maturity will be reset to within 60 days before the CDA's scheduled maturity.
"Extending the maturity of the term loan and reducing the outstanding principal considerably strengthens our capital structure," said Stephanie Fisher, chief financial officer of YRC Worldwide.
"With the successful extension of the term loan, we have met the conditions for extending the maturity of our asset based loan facility from February 2019 to June 2021. I would like to thank our lenders who have been supportive of our long-term vision for the Company," concluded Fisher.
Second Quarter 2017 Earnings Conference Call
On Thursday, August 3, 2017, at 4:30 p.m. ET, company executives will host a conference call with the investment community to discuss second quarter 2017 financial results. Second quarter earnings will be released the same day, Thursday, August 3, 2017, following the close of the market.
The call will be webcast and can be accessed live or as a replay via YRC Worldwide's website www.yrcw.com.