Yellow’s Apollo Loan Pays 17%, Pushes for Treasury Debt Payoff
Yellow Corp., a leading global logistics company, has secured a loan from Apollo Global Management Inc. that pays 17% interest. The loan is part of a larger effort by Yellow to pay off its Treasury debt and reduce its interest payments.
Yellow’s Financial Struggles
Yellow Corp. has been struggling financially for some time. The company has been weighed down by a large amount of Treasury debt, which has been a major burden on its finances. The company has been paying high interest rates on its Treasury debt, which has been a major drag on its profitability.
Apollo Loan to Help Pay Off Treasury Debt
Yellow has secured a loan from Apollo Global Management Inc. that pays 17% interest. The loan is part of a larger effort by Yellow to pay off its Treasury debt and reduce its interest payments. The loan will be used to pay off a portion of the company’s Treasury debt, which will reduce its interest payments and improve its financial position.
Benefits of Paying Off Treasury Debt
Paying off its Treasury debt will have a number of benefits for Yellow. First, it will reduce the company’s interest payments, which will improve its profitability. Second, it will reduce the company’s debt burden, which will make it easier for the company to access additional financing in the future. Finally, it will improve the company’s credit rating, which will make it easier for the company to access additional financing at lower interest rates.
Risks of Paying Off Treasury Debt
Paying off its Treasury debt also carries some risks for Yellow. First, it will reduce the company’s liquidity, as the loan will need to be repaid over time. Second, it will reduce the company’s flexibility, as the loan will need to be repaid in full before the company can access additional financing. Finally, it will increase the company’s risk, as the loan carries a higher interest rate than the company’s Treasury debt.
Yellow’s Financial Outlook
Yellow’s financial outlook is uncertain. The company’s ability to pay off its Treasury debt and reduce its interest payments will depend on its ability to generate sufficient cash flow to service its debt. If the company is unable to generate sufficient cash flow, it may be forced to default on its debt or seek additional financing.
Conclusion
Yellow Corp. has secured a loan from Apollo Global Management Inc. that pays 17% interest. The loan is part of a larger effort by Yellow to pay off its Treasury debt and reduce its interest payments. Paying off its Treasury debt will have a number of benefits for Yellow, but it also carries some risks. The company’s financial outlook is uncertain, and its ability to pay off its Treasury debt and reduce its interest payments will depend on its ability to generate sufficient cash flow to service its debt.