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YRC Closes on First Part of $151M SLB

OVERLAND PARK, KS-YRC Worldwide Inc. closes on the first tranche of a transaction to sell 32 of its facilities to NATMI Truck Terminals LLC.

By Cari Brokamp | Updated on February 02, 2009

OVERLAND PARK, KS-Transportation service provider YRC Worldwide Inc. closed last week on the first part of a $151 million sale-leaseback that will sell 32 of its facilities to Annapolis, MD-based NATMI Truck Terminals LLC.

The first tranche of the transaction, which closed Friday, brought the Overland Park, KS-based Fortune 500 company $101 million of proceeds. The second portion of the deal, expected to close Friday, February 13, will provide an additional $50 million. The deal has a 14% cap rate, with annual lease payments around $21.1 million. A company release says this deal may be the first of many sale-leasebacks it executes in the coming months in an effort to improve cash flow.

YRC executives told investors during a year-end earnings call Friday that it has spent recent months investigating ways to improve liquidity, and that this deal is one step in that process. EVP and CFO Timothy Wicks said the company plans to negotiate additional sale-leasebacks in the future to that same end.

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