YRC Lenders Back Agreement Changes

YRC Worldwide said Monday it has amended its July 2011 agreement with lenders to set new financial performance targets over the next two years, including a lowered profitability requirement.

The revised agreement sets new targets for earnings before interest, taxes, depreciation and amortization, as well as new EBITDA ratios relative to both debt and interest.

The less-than-truckload carrier also said the revised agreement will allow it to use the proceeds from the planned sale of unused terminal real estate to pay workers’ compensation claims.

For example, the EBITDA target for the 12-month period ending June 30 was lowered to $145 million from $160 million, and the target for the 12-month period ending Sept. 30 was lowered to $155 million from $210 million.

Last month, YRC said it would be asking its lenders for relief in order to remain compliant with debt covenants.

YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.