Editor’s note: CORRECTION — The second sentence in the first paragraph has been corrected to reflect that RBS Citizens Business Capital was the administrative agent for the YRC Worldwide Refinancing. The ABF Journal incorrectly identified the administrative agent as JPMorgan Chase. We apologize for the error.

YRC Worldwide announced that it closed on the financing of a new $700 million term loan and a $450 million ABL facility, which is $50 million larger than the company’s current ABL facility, and will support approximately $365 million letters of credit at closing. According to a direct source, RBS Citizens Business Capital acted as administrative agent for this facility.

The new ABL facility also includes the ability to increase the facility size by an additional $100 million to accommodate future growth and may provide additional liquidity for the business going forward. Proceeds from the new term loan facility will be used to refinance the previous term loan and ABL facilities put in place in August 2007 and restructured in July 2011. These new facilities will extend maturities to 2019 and provide interest savings to the company of approximately $40 to $50 million per annum.

“These new senior debt facilities give the company a much less leveraged, simplified and stable capital structure. They also significantly extend the runway to continue improving the operating performance of YRC Freight and provide a healthy level of liquidity so that we may continue increasing our investment in our people, equipment and technology,” said Jamie Pierson, CFO of YRC Worldwide. “This refinancing was made possible by our improved operating performance since we took over in late 2011 and is reflective of the market’s recognition of the progress we have made over that time frame. The new credit agreements are much more flexible than the previous agreements, and when combined with the increased flexibility under our recently ratified MOU extension, we are now well-positioned to run the business with an eye toward providing ever-improving service to our customers, attractive jobs for our employees and value for our shareholders.”

“Today is the culmination of a two-year journey and marks the final step in the company’s capital structure transformation. We are pleased with the support we received from each of our stakeholders and will now have the ability to shed many of the distractions of the past several years and focus solely on improving the operations of the business,” said James Welch, CEO. “As one of the nation’s original LTL companies, freight is our business, and we are an essential part of the North American supply chain. Every day, YRC Freight, Holland, Reddaway and New Penn together have 15,000 drivers on the road serving 250,000 customers. Now, we are set to move forward with a competitive, five-year IBT contract, significantly less debt, reduced interest payments and one of the most experienced teams of freight professionals in North America.”

Overland Park, KS-based YRC Worldwide has one of the largest less-than-truckload (LTL) networks in North America, with local, regional, national and international capabilities.