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.
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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.
--Gaurav Sharma
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