YRC raises spread on $700 million term loan to Libor plus 700 bps

By Sara Rosenberg

New York, Feb. 11 - YRC Worldwide Inc. increased pricing on its $700 million five-year senior secured term loan (Ba3/CCC+) to Libor plus 700 basis points from Libor plus 675 bps, according to a market source.

Also, the soft call protection on the term loan was revised to 102 in year one and 101 in year two from just 101 for one year, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99, and maximum total leverage and maximum capital expenditures covenants.

Recommitments were due at noon ET on Tuesday, the source added.

Allocations are expected on Wednesday.

The company's $1.15 billion credit facility also includes a $450 million ABL revolver.

Credit Suisse Securities (USA) LLC and RBS Citizens are the lead banks on the deal.

Proceeds will be used to refinance existing bank debt.

YRC is an Overland Park, Kan.-based less-than-truckload carrier.

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