YRC Worldwide Completes the Amendment to Extend the Term Loan

Discussion in 'YRC Freight' started by Freightmaster1, Jul 27, 2017.

  1. Freightmaster1

    Freightmaster1 Well-Known Member

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    "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 James Welch, chief executive officer of YRC Worldwide. "Extending the term loan is an important step as we continue to position the Company for long-term success. We believe it is prudent to take the refinancing risk off the table before the term loan matured in early 2019, to focus on executing operationally and improving our financial results. We plan to continue evaluating additional opportunities to strengthen the Company for our customers, employees and investors," concluded Welch.
    http://www.nasdaq.com/press-release...ndment-to-extend-the-term-loan-20170726-01504
    :hyper:
     
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  2. Freightmaster1

    Freightmaster1 Well-Known Member

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    How about focusing on getting wages back up to full scale along with the pension contributions? Hey Ernie, check out the "good news" from YRCW!

    [​IMG]
    Don't worry! Just be thankful you got a job!
    :chairshot:
     
  3. cellblock309

    cellblock309 Active Member

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    Banks laughing more money to restructure and big interest for years to come they've made more money in interest since 2008 then yrcw owes them .......I'm not explaining trust me they have made 3 times or more then what they loaned........banks could close the doors and write the debt as s lose thou they made way more then they loaned its called a paper loss
     
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  4. cellblock309

    cellblock309 Active Member

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    Look at it like a credit card paying 28 % and you make minuim payment you will never pay it off credit card company laughs all the way
     
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  5. Shutter Down

    Shutter Down Member

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    Good news I'm sure they factored in me doing nothing I can't do less work than I'm doing now.
    #professionalfreightforker
    #whogivesadam
     
  6. mysticobra

    mysticobra Just here.

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    Freight Forker. Ha.
     
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  7. SamHouston

    SamHouston Member

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    Not sure if everyone read this closely. They are refinancing at Libor plus 8.5 percentage points. In other words the interest on $650 million is going up one point and be over 10%. That's not good news, it's refinancing on a hope there will be a huge boost in the economy and customers will flock to YRC due to capacity at other carriers. And FYI that 650 million is only a portion of the debt.
     
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  8. vongrimmenstein

    vongrimmenstein Well-Known Member

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    So, combine all the portions & please tell me what the total dollar figure for debit is. Thanks. von.
     
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  9. SamHouston

    SamHouston Member

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    It's still over a billion and nobody but YRC walks into bank over a year early and asks for a higher interest rate. It can only mean the risk is now greater.
     
  10. wongway

    wongway -15% Pay & Broke Pension Fund

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    Cha Ching $$$$$ 10% Interest SWEET deal for banks !! getting closer to our -15% !! and plus to now give them all a Bonus for getting the refinance deal done !
     
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  11. SamHouston

    SamHouston Member

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    Yep....I know Mitch is still taking care of his boy Keith and using the labor managers like pawns to get the next yes vote.
     
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  12. vongrimmenstein

    vongrimmenstein Well-Known Member

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    What do you bet that the percent of interest rate raise will be an exact match as to the next 'give us more of your pay check' so they can afford the new cost of their debit? Remember, we don't want to close the doors, the world will end. Another way to look at it is you voted to give back 15% so you have a job. If they ask for another 5% give back, for a total of 20% slap in the face, do you vote yes to keep the world from collapsing? Or do you say pay our rate or lock the gate? Just wondering. von.
     
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  13. bigtruk_us

    bigtruk_us Well-Known Member

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    Hey why didn't we vote this time for a loan extension like we did for the MOU2014
     
  14. bigtruk_us

    bigtruk_us Well-Known Member

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    You can have all the changes of operations you want.But the definition of insane is keep doing the same thing and expecting a different result.Until the company finds good freight supervisors and managers and the perpetual distrust between labor and the company/union continues expect the same financial result.This company has tried changes of operations under the consult of ex Conway and FedEx leaders and the end result was dismal.Just my humble opinion
     
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  15. bigtruk_us

    bigtruk_us Well-Known Member

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    ERNIE!You're being tested
     
  16. bigtruk_us

    bigtruk_us Well-Known Member

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    Yeah..that was done without another sorry MOU VOTE
     
  17. bigtruk_us

    bigtruk_us Well-Known Member

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    Also that undone one of the premises for the mou2014.To lower the interest rate on the company's loans..or was it?
     
  18. bigtruk_us

    bigtruk_us Well-Known Member

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    Also wasn't the concessions to pay down the debt?So why is there an expansion of the company debt thru 2022?
     
  19. hilo342

    hilo342 Active Member

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    How much was the debt reduction ? Would seem to me with a 1 point increase they got a substantial reduction in principle owed. I'm just a dumb truck driver, but principal reduction is equally important.
    "
    • A reduction of the outstanding principal to $600 million following a $35.2 million payment 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 Stephanie Fisher, chief financial officer of YRC Worldwide. “With the successful extension of the term loan, we have met the conditions for extending the maturity of our asset based loan facility from February 2019 to June 2021. I would like to thank our lenders who have been supportive of our long-term vision for the Company,” concluded Fisher.
     
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  20. SamHouston

    SamHouston Member

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    The reduction was simply a $35 million payment.
     
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