Yak Access, a provider of temporary access roads and related services, received the support of the holders of 100% of its funded debt obligations, as well as its principal equity holder, Platinum Equity, for its restructuring support agreement. With this unanimous lender support for the RSA, Yak expects to rapidly conclude a recapitalization that will substantially reduce its debt and improve its liquidity.
Under the RSA, Platinum Equity has committed to backstop $121 million of new money investments in Yak and will remain in control of a majority of Yak’s common equity. The RSA also contemplates the placement of new revolving credit facility that will further bolster the company’s liquidity. All lenders across the company’s capital structure now support the proposed transaction, which will result in an exchange of the company’s existing loans into a combination of equity and new loans maturing in 2028, resulting in the elimination of more than $500 million of debt, reducing net leverage and associated debt service by more than half. As a result, Yak will emerge from its recapitalization with ample liquidity and a healthy, sustainable balance sheet.
“The undivided support that the Company has received from its lenders and its equity sponsor means that Yak will be able to complete its recapitalization in short order,” Jonathan Duhon, CEO of Yak, said. “This process will provide our business with ample liquidity over the long-term and position Yak to capture increasing demand for its best-in-class services. I continue to appreciate the cooperation of Yak’s vendors and customers through this process, the steadfast support of our lenders and Platinum Equity, and the continued hard work of our employees to implement our shared vision.”