YRC Worldwide spikes 20% after announcing new term loan pact
Earlier on Wednesday, YRC Worldwide announced it has completed a refinancing of its term loan obligations and entered into a term loan agreement with funds managed by affiliates of Apollo Global Management acting collectively as the lead lender for a $600M facility which provides additional liquidity and has a less restrictive financial covenant. This is expected to create operational runway as the company moves forward with its multi-year strategic initiatives designed to achieve sustained profitability. "The new Term Loan Agreement provides the company with increased liquidity through the elimination of annual principal amortization and the ability to reinvest cash proceeds from certain property sales back into the business. To successfully execute the company's multi-year strategy, it is essential we have a capital structure in place that provides added liquidity to invest in the initiatives we have planned and better positions the Company to navigate through cyclical economic environments," said Stephanie Fisher, CFO of YRC Worldwide. Shares of YRC Worldwide are up 19.80% or 69c ti $4.15 per share in afternoon trading on Wednesday.