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

Sad News

“Roberto Cavalli’s Company Confirms His Passing at 83” The self-titled fashion company of Roberto Cavalli announced his passing with great sadness on Instagram last Friday. Cavalli, born in Florence, Italy…

Read more

Celine Dion’s Battle with Stiff Person Syndrome Takes a Devastating Toll

Beloved singer Celine Dion has been facing a heartbreaking struggle with her health. Diagnosed with stiff person syndrome, a neurological condition with no known cure, Dion has been forced to…

Read more

POTENTIAL Half-Sisters Won’t Pause Their Relationship!

Carley and Mercedes, two possible half-sisters, fell in love at the bar. For the past two years, the couple in their mid-twenties has been sharing their bedroom moments on a…

Read more

OJ Simpson Passes Away Aged 76

The notorious murder suspect, who was later found civilly liable for the deaths of his ex-wife Nicole Brown and her friend Ron Goldman passed away surrounded by his family at…

Read more

(VIDEO)Night Court Officially Ended After This Happened

Today, we’re delving into the fascinating world of Night Court, that quirky late ’80s sitcom set in Judge Harry Stone’s bustling municipal courthouse. What mysteries lie beneath Bailiff Bull’s polished dome?…

Read more

More And More PeopIe Are CaIIing This Common Word “Offensive”

Abbie Chatfield, the popular reaIity star known for her appearances on The BacheIor, recently sparked an important conversation about the use of the term ‘femaIes.’ On her It’s A Lot…

Read more

Leave a Reply

Your email address will not be published.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