YRC Worldwide amends loan, deferring interest payments until May 2011

By Sara Rosenberg

New York, Dec. 21 - YRC Worldwide Inc. amended its credit facility, extending the deferral of interest and fees through mid-May 2011, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

In addition, the company amended its asset-backed securitization facility, extending the deferral of interest and fees through May 31, 2011.

Furthermore, the amendments establish the company's 2011 financial covenants in conjunction with the company's finalization of its 2011 financial forecast. For the four quarters ending March 31, 2011, the company's adjusted EBITDA covenant is $140 million and its minimum available cash covenant will remain at $25 million.

The amendments require the company to reach an agreement in principal to recapitalize its balance sheet by Feb. 28, 2011, complete final documentation by March 15, 2011 and close by May 13, 2011.

The effectiveness of the amendments is subject to the consent of the International Brotherhood of Teamsters and agreement by a supermajority of the multi-employer pension funds who are party to the company's contribution deferral agreement.

The amendments were completed on Dec. 20.

JPMorgan is the administrative agent on the credit facility and asset-backed securitization facility.

YRC is an Overland Park, Kan.-based provider of transportation and global logistics services.

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