YRC Worldwide Inc. announced that after its recently finalized bank amendment, a positive step was taken by one of the lead credit agencies. In addition, the company finalized additional sale and financing leaseback agreements with another investor.
Earlier this week, Standard & Poor's (S&P) revised the implications of its CreditWatch review on the company to positive from developing. Given the company's new bank amendment, S&P stated it could raise the company's ratings after further evaluation.
"We appreciate S&P's initial perspective of our bank amendment and their willingness to evaluate its positive liquidity aspects," stated Tim Wicks, Executive Vice President and CFO of YRC Worldwide.
In addition, the company's operating subsidiaries signed agreements with Estes Express Lines ("Estes") to sell and simultaneously lease back certain facilities. The aggregate sale price is approximately $122 million and the property sales are intended to close from March through June 2009. The initial lease term for each facility is ten years, with two, ten-year renewal options to extend the term of each lease by up to an additional 20 years. The company will have a right of first offer if Estes decides to sell a facility during the first 36 months.
