YRC can keep auction money under new debt agreements
YRC Worldwide Inc., the Kansas-based trucking conglomerate with a midstate presence, today said its institutional lenders agreed to loosen some terms of its debt agreements and let the company keep all proceeds from auctions of surplus properties.
The banks that hold the notes on YRC's $1.3 billion debt agreed, with all of them approving the new terms, according to a filing with the U.S. Securities & Exchange Commission. The terms include relaxed metrics to determine whether YRC's financial stability is improving.
YRC's creditors also will allow it to keep the money received from selling off excess property, the company said. Such sales are part of its move to streamline operations and refocus on the less-than-truckload market, or LTL, which takes shipments from multiple clients to make full trucks. The loads are then reorganized at warehouses for shipping to final destinations. The company previously had to give much of its sale proceeds to creditors to pay down debt.
"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," YRC Worldwide CEO James Welch said in a statement.
YRC's stock jumped more than 22 percent this morning to $8 a share, according to Google Finance.