YRC Breaking deal pass's

Discussion in 'YRC' started by rickoliss, Dec 31, 2009.

  1. rickoliss

    rickoliss Bobtail Member

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    Mar 16, 2008
    Auburn NY
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    YRC Worldwide Successfully Reaches Thresholds in Its Debt-for-Equity Exchange Offers
    --88% of Notes Tendered for New Equity
    --Company Achieves Major Milestone in Its Comprehensive Plan

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    Companies:Yrc Worldwide Inc. Related Quotes
    Symbol Price Change
    YRCW 0.99 0.00


    {"s" : "yrcw","k" : "c10,l10,p20,t10","o" : "","j" : ""} Press Release Source: YRC Worldwide On Thursday December 31, 2009, 8:32 am

    OVERLAND PARK, Kan., Dec. 31 /PRNewswire-FirstCall/ -- YRC Worldwide Inc. (Nasdaq: YRCW) announced today that it was successful with its previously announced debt-for-equity exchange offers having received tenders for approximately $470 million in par value, representing approximately 88% of the company's outstanding notes, including $105 million, or 70%, of its 8 1/2% Notes, $217 million of its 5.0% Notes, and $148 million of its 3.375% Notes, representing 94% of aggregate total of the 5.0% and 3.375% Notes. Under the terms of the transaction the company will issue to tendering noteholders approximately 37 million shares of common stock and 4.346 million shares of Class A convertible preferred stock which, together on an as-if converted basis, will represent approximately 94% of the company's total issued and outstanding common stock.



    As part of the previously announced amendments to its credit agreement, the company will be able to defer approximately $19 million of fourth quarter lender interest and fees and will have access to the $159.8 million revolver reserves under the applicable terms of its $950 million revolver. As of December 31, 2009, the company had not used any portion of the revolver reserves. The company expects to defer additional lender interest and fees of $20 to $25 million per quarter during 2010 depending upon its usage level of the credit agreement and asset-backed securitization facility. The company will begin the settlement process today after receiving electronic confirmation of a portion of the notes that were submitted for tender after business hours last night, and the company anticipates that the settlement of all tendered notes will be completed on or before Tuesday, January 5, 2010.



    "The success of this note exchange marks a major turning point for YRC Worldwide -- with our significantly restructured balance sheet and enhanced liquidity, we will move forward from a more solid financial foundation," stated Bill Zollars, Chairman and CEO. "Our comprehensive plan could not have been accomplished without the collective cooperation and continued support of our many stakeholders, including our lenders, our noteholders, and our employees. We remain focused on delivering on our promise of Confidence Delivered for our customers."



    Forward-Looking Statements:



    This news release contains forward-looking statements. The word "will" and similar expressions are intended to identify forward-looking statements. The company's expectations regarding deferred interest and fees are only its expectations regarding the deferred amounts. Actual deferred interest and fees could differ based on a number of factors, including (among others) the company's expected borrowings under the credit agreement and the asset-backed securitization facility, which is affected by revenue and profitability results and the factors that affect revenue and profitability results (including the risk factors that are from time to time included in the company's reports filed with the SEC, including the company's Annual Report on Form 10-K for the year ended December 31, 2008).



    The company's future results could differ materially from any results projected in such forward-looking statements because of a number of factors, including (among others) inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing for rail service, ability to capture cost reductions, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including (without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction, and the risk factors that are from time to time included in the company's reports filed with the SEC, including the company's Annual Report on Form 10-K for the year ended December 31, 2008.



    YRC Worldwide Inc., a Fortune 500 company headquartered in Overland Park, Kan., is one of the largest transportation service providers in the world and the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Glen Moore, YRC Logistics, New Penn, Holland and Reddaway. YRC Worldwide has the largest, most comprehensive network in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. Please visit yrcw.com for more information.

    Hey Mooney Stick that in your crack pipe and smoke it
     
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  3. jtrnr1951

    jtrnr1951 Road Train Member

    Prolonged the pain.....
     
  4. Mooney

    Mooney Road Train Member

    LOL.

    Shorted at $5.52

    Yeah, I'm bummed.

    I hate making over 80% on my money.
     
  5. blackw900

    blackw900 The Grandfather of Flatbed

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    A.W.O.L
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    This is the relevant paragraph...


    In other words....It won't be long before the Teamsters crush the life out of this company like they do most other companies that they get involved in.
    It's interesting to note that the unions tactics are mentioned right after "terrorist attack"...Coincedince?
     
  6. rickoliss

    rickoliss Bobtail Member

    39
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    Mar 16, 2008
    Auburn NY
    0
    Customers are returning 'pretty aggressively,' Zollars tells news wire


    Shippers are returning to YRC Worldwide "pretty aggressively," Chairman and CEO William D. Zollars told Dow Jones Newswire today, stating that a bankruptcy filing at the nation's largest trucking operator "is not on our radar screen now."
    However, Zollars didn't quantify the amount of business the struggling less-than-truckload company lost in December as it fought to win a massive debt-for-equity swap with bondholders, or how much of its former freight it is recovering.
    Shipping volumes at national carrier YRC were down 43 percent year-over-year in the third quarter, though the less-than-truckload specialist saw sequential quarterly improvements, with the rate of its freight decline cut in half from the second quarter.
    Zollars told Dow Jones Newswire the LTL company's "liquidity cushion" under a new lending covenant will help YRC Worldwide motor into March at least, when he said freight shipping typically improves.
    YRC Worldwide still must find $30 million in March to retire unsecured USF notes not tendered in its debt-for-stock swap, and an additional $15 million in April, but Zollars said he is confident the company will be able to meet those deadlines.
    Wall Street analysts warn the company must generate more cash and reduce its monthly "cash burn" on operations to remain viable in the long-term, despite more lenient terms from its lenders and wage and benefit concessions from the Teamsters union.
    Zollars' confidence comes from winning a brawl with bondholders last month over a debt-for-equity swap that came close to upsetting YRC's carefully crafted recovery plans.
    The debt-for-stock exchange was a key component in a multi-step strategy to reorganize YRC and avert a bankruptcy filing. The exchange had to succeed to trigger new lending and labor agreements that will save YRC more than a billion dollars.
    When it launched the exchange in November, YRC expressed confidence that 95 percent of its note holders would accept the deal by Dec. 7. But it had to extend its deadline six times as a core group of bondholders held out against the exchange.
    Some of those bondholders had credit default swaps that acted as insurance against default, promising to pay investors the value of their bonds in a bankruptcy.
    YRC finally won the exchange after dropping the participation requirement for the tender offer -- lowering the amount of debt it would eliminate from $536.8 million to $470 million -- and after the Teamsters union put pressure on Wall Street firms.
    Now the bondholders -- who after the swap own 94 percent of the company -- will appoint a new board of directors for YRC Worldwide. Zollars told Dow Jones Newswire he plans to remain as chairman when a new board is named as early as next month
     
    Last edited by a moderator: Jan 6, 2010
  7. Mooney

    Mooney Road Train Member

    And Zollars has not been wrong yet.

    Oh, wait.
     
  8. ms1700

    ms1700 Bobtail Member

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    Jan 6, 2010
    Warren,ohio
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    WHAT? The only person that needs to go is not going?
     
  9. _ton bundle

    _ton bundle Road Train Member

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    Jan 7, 2009
    Elevator Bay, Minnesota
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    The stock rose from 63 cents to 85 cents in the last two days... FLY YOU PIG, FLY!!!!

    I heard that Goldman Sachs bought a block of 100,000 shares. They must've checked all of their couch cushions for change to come up with the cash.
     
  10. ms1700

    ms1700 Bobtail Member

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    Jan 6, 2010
    Warren,ohio
    0
    YRC. Knows what they are doing, we just don't know what they are doing to us. It's a plan and it was accelerated by the economy, It was a Jewell that fell right into their lap and they could not be more happy.
     
  11. Snot Rocket

    Snot Rocket Bobtail Member

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    Jan 28, 2010
    Bethany, IL.
    0
    As far as I'm concerned I wish they would just fold. The only reason they still have freight to haul is that they are buying freight. They have lowered their rates so low to keep their doors open that they are hurting all of the freight company's. I know that sounds insinuative to all the workers at YRC. But if they were to fold those workers would have jobs at other LTL company's. Save YRC you my lose 3 other LTL carriers. Put the pig out of its misery. Just my opinion.
     
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