YRC Worldwide Completes the Amendment to Extend the 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
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 millionfollowing a $35.2 millionpayment 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
Second Quarter 2017 Earnings Conference Call
The call will be webcast and can be accessed live or as a replay via YRC Worldwide's website www.yrcw.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as "will," "expect," "intend," "anticipate," "believe," "could," "would," "should," "may," "project," "forecast," "propose," "plan," "designed," "enable," and similar expressions which speak only as of the date the statement was made are intended to identify forward-looking statements. Forward-looking statements are inherently uncertain, are based upon current beliefs, assumptions and expectations of Company management and current market
conditions, and are subject to significant business, economic, competitive, regulatory and other risks, uncertainties and contingencies, known and unknown, many of which are beyond our control. Our future financial condition and results could differ materially from those predicted in such forward-looking statements because of a number of factors, including (without limitation): general economic factors; business risks and increasing costs associated with the transportation industry; competition and competitive pressure on pricing; the risk of labor disruptions or stoppages; increasing pension expense and funding obligations; increasing costs relating to our self-insurance claims expenses; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; our ability to comply and the cost of compliance with, or liability
resulting from violation of, federal, state, local and foreign laws and regulations; impediments to our operations and business resulting from anti-terrorism measures; the impact of claims and litigation expense to which we are or may become exposed; failure to realize the expected benefits and costs savings from our performance and operational improvement initiatives; our ability to attract and retain qualified drivers and increasing costs of driver compensation; privacy breach or IT system disruption; risks of operating in foreign countries; our dependence on key employees; seasonality; changes in the cost of fuel or the index upon which we base our fuel surcharge and the effectiveness of our fuel surcharge program in protecting us against fuel price volatility; our ability to generate sufficient liquidity to satisfy our cash needs and future cash commitments, including (without
limitation) our obligations related to our indebtedness and lease and pension funding requirements, and our ability to achieve increased cash flows through improvement in operations; limitations on our operations, our financing opportunities, potential strategic transactions, acquisitions or dispositions resulting from restrictive covenants in the documents governing our existing and future indebtedness; our failure to comply with the covenants in the documents governing our existing and future indebtedness; fluctuations in the price of our common stock; dilution from future issuances of our common stock; our intention not to pay dividends on our common stock; that we have the ability to issue preferred stock that may adversely affect the rights of holders of our common stock; and other risks and contingencies, including (without limitation) the risk factors that are included in our
reports filed with the
Please visit our website at www.yrcw.com for more information.
Investor Contact: Tony Carreño 913-696-6108 firstname.lastname@example.org Media Contact:
Mike Kelley916-696-6121 email@example.com
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