NEW YORK, April 21 Trucker YRC Worldwide Inc
(YRCW.O) faces up to $4 million a year in additional interest
costs under new loan terms worked out with its lenders, the
company said on Monday.
The world's largest trucking company said in a securities
filing that it expects interest expense to increase $1.5
million to $4.0 million annually after a credit agreement
amendment on a $950 million senior revolving credit facility
and a $150 million term loan raises interest rates and fees.
Additionally, the Overland Park, Kansas-based company will
have to pledge physical assets if its credit rating falls
further. In October, Standard & Poor's cut its rating to BB
from BB+, two notches below investment grade.
The amendment requires YRC and domestic subsidiaries to
pledge collateral, including fee-owned real estate parcels that
have an estimated internal market value of $2.5 million or
greater and 100 percent of the stock of all domestic
subsidiaries of the company.
The amendment also requires YRC and subsidiaries to pledge
assets, including rolling stock and the remaining real estate
if the company receives a rating of BB- or worse from Standard
Shares of YRC were down 52 cents, or 3.5 percent, to $14.18
in early trading on Nasdaq. The stock has fallen almost 17
percent so far this year.
(Reporting by Chelsea Emery)