YRC Worldwide finalizes bank amendment

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YRC Worldwide Inc. announced Thursday, Feb. 12, that it has finalized an amendment with the company’s lenders of its credit facilities and renewed its asset-backed securitization facility two months prior to maturity.

“We are pleased with the banks’ support of our strategic actions and their confidence in our ability to improve our financial position,” says Tim Wicks, executive vice president and chief financial officer of YRC Worldwide, based in Overland Park, Kan. “We feel good about the amendment that we reached and the flexibility it will provide us to help weather this economic recession.”

The company announced Jan. 30 that it had closed the first part of the sale and financing leaseback transaction from a contract with NATMI Truck Terminals entered on Dec. 19. The company said it had received about $101 million of proceeds and expected to receive about $50 million more in the second closing.

According to YRC Worldwide, in its waivers filed with the SEC on Jan. 22, it stated that it had the ability to use the proceeds from this transaction for operating purposes. The company said it would account for the proceeds as a financing transaction; therefore, the assets would remain on the books, and a lease obligation would be recorded as long-term debt. The company said it would recognize the lease payments through interest expense with no impact to depreciation expense.