The U.S. Department of the Treasury is set to lend the YRC Worldwide Inc. trucking company $700 million in exchange for a 29.6 percent equity stake in the logistics giant, which specializes in LTL (less-than-truckload) shipping.
According to a statement from the Treasury, an agreement on the loan was reached with YRC on Tuesday under Division A, Title IV, Subtitle A of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Although the logistics company does not qualify as a small business under CARES, the Treasury said the loan was justified because the Secretary of Defense had certified that YRC’s freight services are “critical to maintaining national security.”
