YRC cuts debt by $300 million; senior debt refinancing expected next

By Caroline Salls

Pittsburgh, Jan. 31 - YRC Worldwide Inc. completed a series of transactions that will reduce its debt by about $300 million, according to a company news release.

YRC said it issued $250 million of common stock and preferred stock, the proceeds of which will be used to retire the company's convertible notes.

Additionally, roughly $50 million in principal amount of the company's other convertible notes were exchanged or converted to common stock.

YRC said it also amended and extended its pension fund obligations to December 2019 and satisfied the final conditions to its modified contract with the International Brotherhood of Teamsters.

"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," YRC chief financial officer Jamie Pierson said in the release.

"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.

"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."

YRC is a trucking company based in Overland Park, Kan.

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