YRC Worldwide Launches Credit Agreement Amendment

OVERLAND PARK, Kan., Sept. 16, 2014 (GLOBE NEWSWIRE) — YRC Worldwide Inc. (Nasdaq:YRCW) today announced that it has launched an amendment to its Term Loan Credit Agreement (the “Credit Agreement”) to revise its leverage ratio covenant from the third quarter of 2014 through the fourth quarter of 2016.

“During the first half of the year, revenue has kept pace with our forecast, however, the harsh winter season in the first quarter of this year and subsequent network inefficiencies at YRC Freight in the second quarter of this year resulted in lower than originally anticipated productivities,” said James Welch, chief executive officer of YRC Worldwide, “and the rate of improvement at YRC Freight is taking longer to materialize than expected. The Regional carriers, on the other hand, continue to perform near expected levels and in the range of the market’s margins. While we project to be in compliance with our third quarter leverage ratio covenant, we are launching the amendment now to take uncertainty out of the market and to allow the company to continue making progress on its performance and yield improvement plans,” stated Welch.

“Our progress in the third quarter can be measured by yield and tonnage increases at both YRC Freight and the Regional segment. YRC Freight reported total revenue per hundredweight increases of 2.8% in July and 3.3% in August,” Welch continued. “It also reported tonnage per day increases of 2.4% in July and 0.8% in August. The Regional segment reported total revenue per hundredweight increases of 1.5% in July and 0.6% in August and reported tonnage per day increases of 4.2% in July and 3.7% in August. We are continuing to experience these same trends in the month of September at each of our operating segments,” concluded Welch.

Read more: yrcw.com

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