YRC Reaches Deal To Cut Debt By $300 Million

Photo Courtesy of CCJ Digital
Photo Courtesy of CCJ Digital

YRC Worldwide, the Overland Park, Kan.-based trucking company seeking to refinance close to $1 billion in debt, has reached an agreement with creditors that could reduce its debt by about $300 million.

Some of the company’s creditors and other investors agreed to buy $250 million of new shares for $15 each, and bondholders agreed to convert $50 million in debt to stock at a price between $15 and $16.01 per share.

YRC’s 26,000 Teamsters-represented employees will vote by Jan. 8 on a contract extension with the company. The proposed deal, which would run through 2019, extends a 15 percent pay cut for the union workers and gives YRC increased operating flexibility.

Creditors had sought a new labor deal before agreeing to refinance, but Teamsters leadership wanted concessions from bondholders first. YRC said it “will met a primary requirement” outlined by the Teamsters by cutting $300 million in debt.

Read more from the Kansas City Star and Bloomberg

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