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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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.”
