Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Apollo leads deal for trucking firm Yellow's bankruptcy loan - Bloomberg News

Published 08/01/2023, 01:22 PM
Updated 08/02/2023, 01:07 PM
© Reuters. FILE PHOTO: Freight trucks are driven on the Fisher freeway in Detroit, Michigan March 27, 2009. REUTERS/Rebecca Cook/File Photo

(Reuters) - Creditors led by Apollo Global Management (NYSE:APO) Inc are nearing a deal to provide Yellow Corp with fresh cash during a coming bankruptcy, Bloomberg News reported, citing people familiar with the matter.

Shares of Yellow were up 78% at $3.14 in afternoon trade.

The U.S. asset manager, which owns most of one of Yellow's term loans, is well-positioned to provide backing and is finalizing a deal to lead a debtor-in-possession financing for the cash-trapped trucking company, the report said.

Yellow declined to comment, while Apollo did not immediately respond to a Reuters request for comment.

Yellow, formerly called YRC Worldwide (NASDAQ:YELL), is the third-biggest U.S. trucking company. It transports goods from multiple shippers in single trailers and focuses on "less-than-truckload" (LTL) shipping, the transportation of goods that don't require a full truckload.

It recently averted a threatened strike by 22,000 Teamsters-represented workers.

Last week, the Teamsters union said Yellow had ceased operations and was filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt.

The trucking firm, which bought companies such as Roadway in 2003 and USF in 2005 to strengthen its LTL offerings, posted a total debt of $1.54 billion last year, according to Refinitiv data.

The company's struggles were compounded by a steep drop in e-commerce shipments from early pandemic highs and an industry-wide decline in freight volumes over the last year.

Yellow has $1.3 billion in debt payments due in 2024, including a $567.4 million term loan due in June and a $729.4 million U.S. Treasury loan due in September.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

(This story has been corrected to remove a reference to $50 million payment in paragraph 6)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.