U.S. Department of the Treasury: YRC, "Transaction Summary"

Summary

A Treasury transaction summary for loans totaling $700 million to YRC Worldwide Inc. (YRC), described as a leading provider of Department of Defense supply transportation and other delivery services for the U.S. Government. Tranche A provides $300 million for near-term contractual obligations and non-vehicle capital expenditures at LIBOR plus 3.5% (1.5% cash and 2.0% payment in kind). Tranche B provides $400 million for capital investments under capital plans subject to approval by Treasury, at LIBOR plus 3.5% in cash. Both tranches are secured and mature on September 30, 2024. Treasury will receive shares equal to 29.6% of YRC's common stock on a fully diluted basis, which go into a voting trust.

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Cite this document

“U.S. Department of the Treasury: YRC, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-yrc-transaction-summary-322ee52284/, SHA-256 42d7abd2abcea937f607baad038c4ad9b9f0503ffb3ea448018f6d479a044a87.

Full text

                                    Transaction Summary

Treasury agreed to make loans totaling $700 million to YRC Worldwide Inc. (YRC). YRC is a
leading provider of Department of Defense supply transportation and other delivery services for
the U.S. Government.

The loans will be made in two tranches, both of which will be secured. Tranche A provides $300
million to meet certain of YRC’s near-term contractual obligations and non-vehicle capital
expenditures, with an interest rate equal to LIBOR plus 3.5%, consisting of 1.5% cash and 2.0%
payment in kind. Tranche B provides $400 million for capital investments made pursuant to
capital plans subject to approval by Treasury, with an interest rate equal to LIBOR plus 3.5% in
cash. Both tranches mature on September 30, 2024. The agreements include covenants by YRC
to comply with certain restrictions on employee compensation, stock repurchases, dividends, and
reductions in employment levels, as required by the CARES Act. Treasury will receive shares
equal to 29.6% of YRC’s common stock on a fully diluted basis, to be held in a voting trust, as
appropriate taxpayer compensation.

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File: TREAS-YRC-Transaction-Summary.pdf
Size: 32,954 bytes
SHA-256: 42d7abd2abcea937f607baad038c4ad9b9f0503ffb3ea448018f6d479a044a87
Our copy: TREAS-YRC-Transaction-Summary.pdf
Original: home.treasury.gov