COLUMBIA, Miss., Feb. 2, 2023 /PRNewswire/ — Yak Access, LLC (“Yak” or the “Company”), the nation’s leading provider of temporary access roads and related services, announced today that it has executed a Restructuring Support Agreement (the “RSA”) with holders of approximately 78% of its funded debt obligations, as well as its principal equity holder, Platinum Equity. Under the RSA, Yak expects to conduct an expedited recapitalization that will substantially reduce its debt and improve its liquidity.
Under the RSA, Platinum Equity has committed to backstop $121,000,000 of new money investments in Yak and will remain in control of a majority of Yak’s common equity. The RSA also contemplates the placement of new revolving credit facility that will further bolster the Company’s liquidity. Strong majorities of lenders across the Company’s capital structure have supported the proposed transaction, including an exchange of their existing loans into a combination of equity and new loans maturing in 2028, resulting in the elimination of over $500,000,000 of debt, reducing net leverage and associated debt service by more than half. As a result, Yak will emerge from its recapitalization with ample liquidity and a healthy, sustainable balance sheet.
Jonathan Duhon, the chief executive officer of Yak, commented, “This agreement is an important step forward for Yak’s business. With this strong show of support from the Company’s lenders and equity sponsor, I am confident that the Company’s recapitalization process will provide our business with ample liquidity over the long-term and position Yak to capture increasing demand for its best-in-class services. I especially appreciate the cooperation of Yak’s vendors and customers through this process, the steadfast support of our lenders and Platinum Equity, and the continued hard work of our employees to implement our shared vision.”
Under the RSA, Yak expects to consummate the recapitalization transaction as efficiently as possible through an out-of-court exchange.
“This is a great day for our partnership with Yak and its stakeholders,” said Jacob Kotzubei, a Platinum Equity partner. “Platinum Equity’s commitment to invest is founded on our confidence in the Company’s strong operational foundation, its core values, and its proven track record of innovation. We continue to see a scalable platform with room for strong organic growth.”
About Yak
Yak is a national provider of temporary roadways to remote construction sites. A dominant player in the industry, the Company specializes in selling and leasing mats that often run over rough environmental terrain. In addition to providing mats, Yak offers a suite of related services, including site design, mat installation and removal, and environmental remediation. Yak is headquartered in Columbia, Mississippi, and primarily serves the power line, renewable, industrial, and pipeline industries.
Forward-Looking Statements
Yak has included statements in this press release that constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act, as amended, and Section 27A of the Securities Act of 1933, as amended. As a general matter, forward-looking statements are those focused on future or anticipated events or trends, expectations and beliefs including, among other things, the Company’s expectations with respect to the amend and extend transaction described herein. Such statements are intended to be identified by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon the Company’s then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in this press release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Dan Whelan
Platinum Equity
[email protected]
SOURCE Platinum Equity