YRC Worldwide amends revolver, modifying financial covenants for 2010

By Sara Rosenberg

New York, May 4 - YRC Worldwide Inc. amended its revolving credit facility, resetting financial covenants for the remainder of the year to take into account the impact to its customer base from a delayed note exchange at the end of 2009, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The amended adjusted EBITDA covenants are $5 million for the second quarter, $50 million cumulative for the second and third quarters, and $100 million cumulative for the second, third and fourth quarters.

And, the company is required to maintain minimum available cash of $25 million through the remainder of the year.

In addition, the amendment allows for up to $100 million of net proceeds from an equity issuance prior to Dec. 31 to be retained by the company, instead of having to give 50% of the proceeds to lenders.

The amendment was completed on May 3.

JPMorgan is the administrative agent on the deal.

YRC is an Overland Park, Kan.-based provider of transportation services for the shipment of industrial, commercial and retail goods.

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