Yellow submarine stays afloat with credit deal
OVERLAND PARK, Kan. — Yellow-Roadway Corp. says it has amended a $950 million credit agreement with lenders.
The struggling LTL giant announced in a filing with the Securities and Exchange Commission that lenders, including JPMorgan Chase Bank, would continue to provide it with a $950 million revolving credit facility, according to Associate Press.
The new agreement no loner requires that the company maintain liquidity of $100 million at all times.
The news sent the carrier’s stock higher by 39 cents (17.5%), to $2.62 per share this morning.
The agreement gives YRC Worldwide a longer lifeline. Many analysts have been predicting the carrier’s bankruptcy for months, much to the interest of its competitors, which would welcome what would be a significant capacity shift in the North American LTL sector.
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