Wed 09/28/2022 13:00 PM
United Road Services has been working with PJT Partners as financial advisor and Kirkland & Ellis as counsel as the company continues to burn cash amid the labor and microchip shortage, according to sources.
Continue reading for more intelligence and breaking news reporting on United Road Services and request a trial to access more reporting and analysis on hundreds more performing, stressed and distressed credits in the region.
The truck and car hauling company has struggled with an acute truck driver shortage in the United States as many have left the line of work due to low pay and grueling work hours. The U.S. has a deficit of about 80,000 truckers.
The slowdown in global auto production due to the microchip shortage has also weighed on the business as the company has lost volume in transporting vehicles.
United’s revenue in the transport segment
was down 2.9% year over year to $153 million in the second quarter. The company burned through $5.1 million in cash during the quarter, resulting from $4.8 million used in operations and $300,000 on capital expenditures, the sources said earlier.
The company’s L+550 bps $260 million term loan due 2024 continued to decline and was indicated today at 62.82/66.66, down from 64.86/68.61 a month ago, according to Solve Advisors.
United Road sponsor Carlyle did not respond to a request for comment.
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2022 Reorg Research, Inc. All rights reserved.