YRC Worldwide Inc. said it has completed $1.15 billion in new financing, including term and asset-backed loans that will reduce borrowing costs by $40 million to $50 million annually and extend debt maturities to 2019.
The $700 million term loan is being used to refinance a previous term loan, while the asset-backed facility will support $365 million in current letters of credit. YRC also has the ability to increase the asset-backed facility by $100 million for future liquidity and growth.
YRC's announcement late on Feb. 13 followed two earlier steps that cleared the way for the just-announced refinancing of about 80% of its debt. The Teamsters union rank-and-file members approved a contract extension into 2019, continuing a 15% previous wage cut. Earlier in February, YRC completed a $300 million refinancing, primarily turning convertible debt into equity.
