web analytics

Old Dominion is bidding $1.5 billion on the Yellow stations

Old Dominion beats Estes' offering of Yellow stations.  (Photo: Jim Allen/Free Waves)

Old Dominion beats Estes’ offering of Yellow stations. (Photo: Jim Allen/Free Waves)

Old Dominion Freight Line, which has less than a truckload, has entered into a $1.5 billion bid for Yellow Corp.’s terminals. The new show Bid price exceeds $1.3 billion from LTL peer Estes Express Lines, which was revealed in Thursday’s status update.

The 166-station portfolio offering is a stalking horse purchase agreement, in which the bidder sets a minimum value of the assets to be sold from the bankruptcy estate. The properties will still be subject to a marketing and sales process in which higher bids from third parties can be accepted.

The terms provide for a maximum breakup fee of $26 million and up to $2 million in reimbursement of expenses. Old Dominion (NASDAQ: ODFL) requires a 5% deposit. The bid will remain valid for 180 days.

Thursday’s court action also identified the bankruptcy financing lenders.

Hedge funds Citadel and MFN Partners will provide $142.5 million in debtor-in-possession (DIP) financing, which will give the Yellow estate the funds to liquidate the assets. The transaction also includes an additional deferred drawing commitment from MFN of up to $70 million.

MFN acquired 42.5% of the shares in Yellow prior to its offering close.

castle recently Buy a Yellow loan for a term from Apollo Global Management (NYSE: APO) after submitting superior DIP financing offers following Yellow’s Aug. 7 filing for bankruptcy. The Apollo DIP deal was said to be the only viable offer made to Yellow prior to the Chapter 11 petition.

A representative from Old Dominion could not immediately be reached for comment.

More Shipping Waves articles by Todd Maiden

the post Old Dominion is bidding $1.5 billion on the Yellow stations Debuted charging waves.

Related Posts

Amazing Recovery of Rescued Owl: Shot with BB Gun and Trapped in Manure Pit

In a heartwarming tale, a wildlife center in Pennsylvania has successfully nursed a Great Horned Owl back to health after it faced a traumatic experience. The owl, named Lucky, was…

Read more

An iceberg drifts close to the nearby village. People Get Scared When They See What’s On It

A looming iceberg threatened the community of Haven’s Edge, upsetting the coastline and making the people fearful and confused.   The image that greeted the locals as they approached the…

Read more

2nd grader astonishes audience with an unexpectedly mature rendition of a Johnny Cash classic

There is no doubt that this 7-year-old Johnny Cash impersonator is incredibly adorable. He sings ‘Folsom Prison Blues’ with a charming twang in his voice as he astonishes an audience…

Read more

Man Gives Salary to Woman with Child Asking for Money for a Ticket, Next Day, a Large White Limousine Pulls up to His House

On a cold November evening, Greg, a hardworking construction worker with streaks of gray in his beard, headed toward the train station after a long day. Little did he know…

Read more

A Blind Elderly Woman Asked Me to Walk Her Home, The Next Day, Her Sons Showed Up on My Doorstep with the Police

It began like any ordinary morning: a quiet goodbye at my father’s grave. But by the following day, I found myself in a police station, accused of a crime I…

Read more

Little Johnnys SAVAGE Response to His F in Math, You Wont Believe His Answer

Math Class Humor: A Lesson in Perspective Math can feel like a puzzle, especially for kids trying to wrap their heads around numbers and equations. But sometimes, in the middle…

Read more

Leave a Reply

Your email address will not be published. Required fields are marked *