TNFINC certifies ratification of YRC Worldwide contract
YRC Worldwide Inc. announced that the Teamsters National Freight Industry Negotiating Committee (TNFINC) certified the results of the Teamsters ratification vote and that, on a related note, the certified Amended Memorandum of Understanding (MOU) satisfied the relevant condition of the equity transaction announced on December 23rd.
“The ratification of the revised MOU, our improved performance and the committed equity transaction clear the way for us to enter the senior debt markets to refinance our current term and asset-based loans,” said Jamie Pierson, chief financial officer of YRC Worldwide.
As previously announced on December 23, 2013, the company has entered into agreements whereby the company would issue $250 million of common stock and preferred stock and use the proceeds to pay off its existing 6% Convertible Notes due February 2014 and defease and/or pay off its existing Series A Convertible Notes due March 2015. In addition, holders of approximately $50 million in principal amount of the company’s existing Series B Convertible Notes due March 2015 have agreed to exchange or convert those notes to common stock, further reducing the company’s debt. The investors have confirmed that the revised MOU is satisfactory under the terms of these existing agreements.
The company plans to hold a bank meeting on Tuesday, January 28, 2014, at 2:00pm EST to launch the new senior credit facilities.
