Old Dominion ups ante with $1.5B bid on Yellow’s terminals

googletag.cmd.push(function() {
var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[728, 90], [468, 60], [300, 100], [320, 50]], 'div-gpt-ad-b1-i-fw-ad-1').defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads());
gptAdSlots.push(gptSlot);
});

googletag.cmd.push(function() { googletag.display('div-gpt-ad-b1-i-fw-ad-1'); });

Less-than-truckload carrier Old Dominion Freight Line entered a $1.5 billion bid for Yellow Corp.’s terminals, according to a Friday filing in a Delaware bankruptcy court. The new offer exceeds the $1.3 billion bid from LTL peer Estes Express Lines, which was revealed at a Thursday status update.

The offer for the 166-terminal portfolio is a stalking horse purchase agreement, wherein the bidder sets the floor for the value of the assets to be sold out of a bankruptcy estate. The properties will still undergo a marketing and sale process in which higher offers from other parties may be accepted.

The terms provide a maximum breakup fee of $26 million and up to $2 million in expense reimbursement. Old Dominion (NASDAQ: ODFL) is required to make a 5% deposit. The bid remains effective for 180 days.

The Thursday court proceeding also named bankruptcy financing lenders.

Hedge funds Citadel and MFN Partners will provide $142.5 million in debtor-in-possession (DIP) financing, which will give Yellow’s estate the funds necessary to liquidate assets. The deal also includes an additional commitment from MFN for a delayed draw of up to $70 million.

MFN acquired a 42.5% equity stake in Yellow ahead of its shutdown.

window.googletag = window.googletag || {cmd: []};
googletag.cmd.push(function() {
googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[468, 60], [728, 90], [300, 100], [320, 50]], 'div-gpt-ad-1665767472470-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads());
googletag.pubads().enableSingleRequest();
googletag.pubads().collapseEmptyDivs();
googletag.enableServices();
});

googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767472470-0'); });

Citadel recently bought Yellow’s term loan from Apollo Global Management (NYSE: APO) after superior DIP financing offers came forward following Yellow’s Aug. 7 bankruptcy filing. Apollo’s DIP deal was said to be the only viable offer provided to Yellow prior to the Chapter 11 petition.

A representative from Old Dominion was not immediately available for comment.

More FreightWaves articles by Todd Maiden

The post Old Dominion ups ante with $1.5B bid on Yellow’s terminals appeared first on FreightWaves.

Source: freightwaves - Old Dominion ups ante with $1.5B bid on Yellow’s terminals
Editor: Todd Maiden

Freight Partnership Group Ltd T/A Freightalent & SG International Management 2018 - 2024 | Website Design by
Privacy Policy
 | 
Cookies
menu