Mississippi company releases restructuring support agreement details, including eliminating $500 million in debt
Published 6:30 am Friday, February 3, 2023
Yak Access, LLC (“Yak” or the “Company”), based in Columbia, the nation’s leading provider of temporary access roads and related services, announced 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.”