Yellow’s DIP delayed-draw term loan increased to $170 million

By Sarah Lizee

Olympia, Wash., Nov. 27 – Yellow Corp.’s junior debtor-in-possession delayed-draw term loan with MFN Partners, LP was amended to increase commitments to $170 million from $70 million, according to an 8-K filed with the Securities and Exchange Commission.

The amendment also increased the number of permitted borrowings of delayed-draw term loans to seven from three.

The increased delayed-draw term commitments will be available to the company to be borrowed starting Dec. 1, but only if cash and cash equivalents of the borrower and its subsidiaries is less than $25 million in total immediately prior to the borrowing.

Each borrowing will be no more than $25 million.

The facility is set to mature in February 2024.

As previously reported, 40% equity owner MFN Partners agreed to provide the DIP delayed-draw term loans in addition to a $142.5 million new money DIP financing from both MFN and Citadel LLC.

Citadel, which recently bought $500 million of Apollo’s term loans, agreed to provide $100 million of the new money, pari with the existing term B-2 debt, and with no rollup of prepetition debt. MFN agreed to provide the remaining $42.5 million in new money on a junior basis, coming in second on the B-2 priority collateral, but junior to the rest of the secured collateral.

Alter Domus Products Corp. is the administrative agent and collateral agent for the DIP financing.

Yellow is a provider of regional, national and international shipping services based in Nashville. The company filed bankruptcy on Aug. 6 under Chapter 11 case number 23-11069.

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