COLUMBIA, Miss., March 13, 2023 /PRNewswire/ — Yak Access, LLC (“Yak” or the “Company”), the nation’s leading provider of temporary access roads and related services, has announced that it completed a major recapitalization led by its principal equity holder, Platinum Equity, on March 10, 2023.
Through this transaction, Yak obtained $121,000,000 of new money investments, largely from Platinum Equity, which remains in control of a majority of Yak’s common equity. All lenders across the Company’s capital structure supported the transaction, which resulted in an exchange of their existing loans into a combination of equity and approximately $419,000,000 in new loans maturing in March 2028. Yak also entered into a new $75,000,000 revolving credit facility led by MidCap Financial. By eliminating over $500,000,000 of net debt and substantially reducing leverage and debt service, Yak has emerged from this transaction with ample liquidity and a healthy, sustainable balance sheet.
Jonathan Duhon, the chief executive officer of Yak, commented, “I continue to appreciate the unanimous support of Platinum Equity and our lenders, as well as the cooperation of Yak’s vendors and customers throughout this process and the hard work of our employees. With ample liquidity from Friday’s transaction, Yak is strongly positioned to capture burgeoning demand for its best-in-class services.”
Jacob Kotzubei, co-president of Platinum Equity, added, “We are pleased to take this step forward in our partnership with Yak and its other stakeholders. Our new investment in Yak demonstrates Platinum Equity’s confidence in its operational foundation, its core values, and its ability to drive organic growth through continuous innovation.”
Yak is a national provider of temporary roadways to remote construction sites. A dominant player in the industry, the Company specializes in selling and leasing mats that often run over rough environmental terrain. In addition to providing mats, Yak offers a suite of related services, including site design, mat installation and removal, and environmental remediation. Yak is headquartered in Columbia, Mississippi, and primarily serves the power line, renewable, industrial, and pipeline industries.
Yak was advised by Milbank LLP as legal counsel, Alvarez & Marsal North America, LLC as restructuring advisor, and Houlihan Lokey Capital, Inc. as financial advisor and investment banker. Platinum Equity was advised by Vinson & Elkins LLP as legal counsel. The ad hoc group of first lien term loan lenders was advised by Akin Gump Strauss Hauer & Feld LLP as legal counsel and Evercore Group L.L.C. as financial advisor. The first lien administrative agent was advised by Simpson Thacher & Bartlett LLP as legal counsel and FTI Consulting, Inc. as financial advisor. The ad hoc group of second lien lenders was advised by Ropes & Gray LLP as legal counsel and Greenhill & Co., LLC as financial advisor.
Yak has included statements in this press release that constitute “forward-looking statements.” As a general matter, forward-looking statements are those focused on future or anticipated events or trends, expectations and beliefs including, among other things, the Company’s expectations with respect to the amend and extend transaction described herein. Such statements are intended to be identified by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon the Company’s then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in this press release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Yak Access, LLC