YRC Worldwide successfully closes $300 million debt reduction
YRC Worldwide Inc. announcedthat it successfully completed a series of transactions that will reduce debt by approximately $300 million. The company issued $250 million of common and preferred stock, the proceeds of which will be used to retire the company’s convertible notes. Additionally, approximately $50 million in principal amount of the company’s other convertible notes were exchanged or converted to common stock. The company also announced that it successfully amended and extended its pension fund obligations to December 2019 and has satisfied the final conditions to its modified contract with the International Brotherhood of Teamsters.
“Today is a great day in the history of YRCW. Beginning in late 2011, this management team set a very deliberate course to stabilize the company and return it to the prominence it once held. While we are not yet done with our operational turnaround at YRC Freight, today’s equity investment and subsequent reduction of approximately $300 million in debt is an incredible validation of the hard work and commitment of every single YRCW employee,” said Jamie Pierson, chief financial officer of YRC Worldwide.
“This transaction will substantially delever the company’s balance sheet and improve the company’s credit profile allowing us to move forward with the final step in the company’s capital structure transformation which is refinancing the senior portion of our debt. We anticipate refinancing our senior debt facilities in mid to late February and by doing so believe we will be able to reduce our interest expense and extend the maturities for five years. Most importantly, we can now fully focus on investing in our employees, equipment and technology and improving our total customer experience. The anticipated capital structure will put the company on solid financial footing and enable us to concentrate on achieving best-in-class performance leading to improved operating results for all of our stakeholders,” concluded Pierson.
