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Bonds News

UPDATE 1-YRC finalizes credit facility amendment with banks

DETROIT, Feb 12 (Reuters) - The largest U.S. trucking company, YRC Worldwide Inc YRCW.O, said on Thursday that it has finalized an amendment with its lenders on its credit facilities.

“We are pleased with the banks’ support of our strategic actions and their confidence in our ability to improve our financial position,” Chief Financial Officer Tim Wicks said in a statement. “We feel good about the amendment that we reached and the flexibility it will provide us to help weather this economic recession.”

Late last month YRC reported a fourth-quarter loss of $4.14 per share and said that it was hopeful of a deal on its $962 million credit facility with its lenders by mid-February.

Over the past year YRC has had to make some tough choices because of the slowing U.S. economy and over-capacity in its regional trucking business.

YRC is a less-than-truckload (LTL) company. LTL operators consolidate smaller loads into a single truck.

YRC integrated its two regional trucking units, with the loss of more than 1,100 jobs and the closure of 27 facilities. In January YRC’s unionized workers approved a 10 percent wage cut in return for a 15 percent stake in the company.

In after-market trade, YRC shares fell nearly 9 percent to $3.41 from their official closing price on Nasdaq of $3.74. (Reporting by Nick Carey, editing by Carol Bishopric)

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