YRC: Union vote certification satisfies equity transaction condition

By Caroline Salls

Pittsburgh, Jan. 28 - YRC Worldwide Inc. said the Teamsters National Freight Industry Negotiating Committee certified the results of the Teamsters amended memorandum of understanding (MOU) ratification vote announced on Monday, satisfying a condition of the company's equity transaction.

"The ratification of the revised MOU, our improved performance and the committed equity transaction clear the way for us to enter the senior debt markets to refinance our current term and asset-based loans," YRC chief financial officer Jamie Pierson said in a company news release.

As previously reported, the company entered into agreements under which it would issue $250 million of common stock and preferred stock and use the proceeds to pay off its existing 6% convertible notes due February 2014 and defease and/or pay off its existing series A convertible notes due March 2015.

In addition, holders of roughly $50 million principal amount of YRC's existing series B convertible notes due March 2015 agreed to exchange or convert those notes to common stock, further reducing the company's debt.

According to the release, the investors confirmed that the revised MOU is satisfactory under the terms of these existing agreements.

The company said it planned to launch the new senior credit facilities at a Jan. 28 bank meeting.

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

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