YRCW finally wins over bondholders

YRCW finally wins over bondholders    Trucking and logistics provider YRC Worldwide declared victory Thursday in its effort to avoid interest payments that could have impaired its liquidity and sent it into bankruptcy.
   The company, based in Overland Park, Kan., said that bondholders representing 88 percent of its notes have agreed to exchange their debt for equity in the company. The news comes after the company extended the tender deadline three times this week to reach the required threshold sought by banks.
   The tenders are valued at about $470 million.
   Under terms of the deal, the company will issue about 37 million shares of common stock and 4.3 million shares of convertible Class A stock to bondholders, who will then own 94 percent of the company. Bondholders will get a fraction of their investment in YRC stock, but hope to make back their money if the company returns to profitability and its stock price increases. YRC shares ended the day Wednesday at $1 per share.

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      The debt-to-equity exchange means the less-than-truckload carrier can now defer a $19 million interest payment due Jan. 1 and have access to a $160 million revolving line of credit. YRC said it plans to defer additional lender interest and fees of $20 million to $25 million per quarter during 2010 depending on how it uses the available credit.
   It said it plans to convert all the bondholders to stockholders by Jan. 5.
   '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,” Bill Zollars, chairman and chief executive officer, said in a statement. “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.”