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Yellow | YRCW Offer Extended To December 23 2009
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12-23-09 deadline
Thursday, December 17, 2009, 8:35am CST | Modified: Thursday, December 17, 2009, 9:49am
YRC Worldwide lowers participation target in debt-for-equity swapKansas City Business Journal
YRC pushes back key deadline in $537M debt-for-equity swap
YRC Worldwide subsidiary faces racial discrimination charges
YRC Worldwide gets more time from its lenders
YRC Worldwide nears deadline for $537M debt exchange
Nasdaq: YRC Worldwide can issue debt-swap stock without shareholder approval
Having fallen short so far in getting enough bondholders to trade company debt for equity, YRC Worldwide Inc. has gotten preliminary approval from lenders to accept a lower participation rate.
Overland Park-based YRC (Nasdaq: YRCW) has called the debt-for-equity swap a key step in its turnaround plan to avoid bankruptcy and reach a more stable financial base. But YRC appears to have backtracked in pursuing its requirement of getting 95 percent of bondholders to agree to the deal. Some have withdrawn, leaving YRC with 57 percent participation as of 4 p.m. Wednesday. The company said Thursday that it thinks some bondholders want to tender their notes only on an expiration date for the exchange.
YRC has needed 95 percent of bondholders to trade about $537 million in YRC debt — about a third — for effectively 95 percent of common shares. The new thresholds are split for different notes. The 8.5 percent notes, due April 15, for YRC’s regional transportation subsidiary need 70 percent participation. YRC needs to get 85 percent participation for two groups of contingent convertible notes due in 2023.
YRC had postponed a Dec. 8 deadline, when it was at 72 percent participation, and pushed back a Tuesday deadline, having made an incremental gain to 75 percent. (YRC Worldwide still comes up short on debt-swap offer, extends deadline - Kansas City Business Journal:) YRC still needs approvals for the change from two-thirds of its lenders and from pension funds that have let YRC defer payments. It has a tentative agreement with a steering committee that represents more than two-thirds of lenders. The preliminary approval comes with some conditions related to how YRC can access its credit line, how it can retire notes that aren’t tendered in the swap, and minimum earnings and cash requirements.
But even if YRC meets the lower marks, it will be left with about $45 million of 8.5 percent notes outstanding, which mature in April, the release said. And YRC’s current credit agreement requires that YRC retire all but $15 million of those notes by March 1. If not, the lenders can speed up YRC’s obligations under the agreement. The credit agreement will keep YRC from using any of its operating cash to retire the notes, so the company would face the uphill battle of finding third-party financing.
YRC’s lenders so far have been very lenient, on Wednesday agreeing to again extend considerations, giving YRC more time to complete the swap before stricter lending requirements kick in. (YRC Worldwide gets more time from its lenders - Kansas City Business Journal:)
The most recent swap deadline, Thursday night, was pushed back to Dec. 23.
Thursday, December 17, 2009, 8:35am CST | Modified: Thursday, December 17, 2009, 9:49am
YRC Worldwide lowers participation target in debt-for-equity swapKansas City Business Journal
YRC pushes back key deadline in $537M debt-for-equity swap
YRC Worldwide subsidiary faces racial discrimination charges
YRC Worldwide gets more time from its lenders
YRC Worldwide nears deadline for $537M debt exchange
Nasdaq: YRC Worldwide can issue debt-swap stock without shareholder approval
Having fallen short so far in getting enough bondholders to trade company debt for equity, YRC Worldwide Inc. has gotten preliminary approval from lenders to accept a lower participation rate.
Overland Park-based YRC (Nasdaq: YRCW) has called the debt-for-equity swap a key step in its turnaround plan to avoid bankruptcy and reach a more stable financial base. But YRC appears to have backtracked in pursuing its requirement of getting 95 percent of bondholders to agree to the deal. Some have withdrawn, leaving YRC with 57 percent participation as of 4 p.m. Wednesday. The company said Thursday that it thinks some bondholders want to tender their notes only on an expiration date for the exchange.
YRC has needed 95 percent of bondholders to trade about $537 million in YRC debt — about a third — for effectively 95 percent of common shares. The new thresholds are split for different notes. The 8.5 percent notes, due April 15, for YRC’s regional transportation subsidiary need 70 percent participation. YRC needs to get 85 percent participation for two groups of contingent convertible notes due in 2023.
YRC had postponed a Dec. 8 deadline, when it was at 72 percent participation, and pushed back a Tuesday deadline, having made an incremental gain to 75 percent. (YRC Worldwide still comes up short on debt-swap offer, extends deadline - Kansas City Business Journal:) YRC still needs approvals for the change from two-thirds of its lenders and from pension funds that have let YRC defer payments. It has a tentative agreement with a steering committee that represents more than two-thirds of lenders. The preliminary approval comes with some conditions related to how YRC can access its credit line, how it can retire notes that aren’t tendered in the swap, and minimum earnings and cash requirements.
But even if YRC meets the lower marks, it will be left with about $45 million of 8.5 percent notes outstanding, which mature in April, the release said. And YRC’s current credit agreement requires that YRC retire all but $15 million of those notes by March 1. If not, the lenders can speed up YRC’s obligations under the agreement. The credit agreement will keep YRC from using any of its operating cash to retire the notes, so the company would face the uphill battle of finding third-party financing.
YRC’s lenders so far have been very lenient, on Wednesday agreeing to again extend considerations, giving YRC more time to complete the swap before stricter lending requirements kick in. (YRC Worldwide gets more time from its lenders - Kansas City Business Journal:)
The most recent swap deadline, Thursday night, was pushed back to Dec. 23.
rexteamster
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As of now, a total of only 57% of the aggregate principal amount of the $538M
At 9am ET this morning, YRC Worldwide issued a press release with an update on its current tender offer and latest bank amendment expectation. YRC expects to file an S-4 later today. Below are some of the takeaways:
Expiration date for exchange offer pushed out from tonight until 11:59 pm ET on December 23, 2009 as of now, and the 95% required tender rate has been revised to 70% of outstanding $150M USF notes ($105M) and 85% of outstanding Contingent Convertible notes ($330M).
As of 5 pm ET on December 16, 2009 a total of only 57% of the aggregate principal amount of the $538M outstanding had been tendered. This is down from 75% who had agreed to tender as of Tuesday, December 15 at midnight, which at the time was up from 72% on December 8 at midnight.
Satisfying the 70% minimum tender rate for the USF notes would leave $45M outstanding coming due in April 2010, of which all but $15M must be retired by March 1, 2010 or lenders may accelerate obligations under the credit amendment.
YRC is NOT allowed to retire remaining USF notes with operating cash or any NOL tax cash refund but must use third-party financing.
If YRC is unable to complete the exchange prior to December 31, 2009 it will be required to make a roughly $19M interest payment on its bank debt for which the company stated: “If it were obligated to make this payment and did not have access to the $106M revolver reserve, the company’s liquidity position would become unsustainable.”
$106M revolver reserve will be divided into two separate $50M and $56M reserves with the $50M available as interim loans through December 31, 2011 as long as YRCW provides the lenders with certain information on or before January 11, 2010 with the additional $56M accessible after completing exchange.
It seems the trustee of the CoCo notes has said it will not agree to the amended terms if the company intends to remove the right of the noteholders to “put”these bonds prior to stated maturity. All terms within are still subject to 2/3 lender approval and the SEC still has yet to deem YRC’s registration effective.
At 9am ET this morning, YRC Worldwide issued a press release with an update on its current tender offer and latest bank amendment expectation. YRC expects to file an S-4 later today. Below are some of the takeaways:
Expiration date for exchange offer pushed out from tonight until 11:59 pm ET on December 23, 2009 as of now, and the 95% required tender rate has been revised to 70% of outstanding $150M USF notes ($105M) and 85% of outstanding Contingent Convertible notes ($330M).
As of 5 pm ET on December 16, 2009 a total of only 57% of the aggregate principal amount of the $538M outstanding had been tendered. This is down from 75% who had agreed to tender as of Tuesday, December 15 at midnight, which at the time was up from 72% on December 8 at midnight.
Satisfying the 70% minimum tender rate for the USF notes would leave $45M outstanding coming due in April 2010, of which all but $15M must be retired by March 1, 2010 or lenders may accelerate obligations under the credit amendment.
YRC is NOT allowed to retire remaining USF notes with operating cash or any NOL tax cash refund but must use third-party financing.
If YRC is unable to complete the exchange prior to December 31, 2009 it will be required to make a roughly $19M interest payment on its bank debt for which the company stated: “If it were obligated to make this payment and did not have access to the $106M revolver reserve, the company’s liquidity position would become unsustainable.”
$106M revolver reserve will be divided into two separate $50M and $56M reserves with the $50M available as interim loans through December 31, 2011 as long as YRCW provides the lenders with certain information on or before January 11, 2010 with the additional $56M accessible after completing exchange.
It seems the trustee of the CoCo notes has said it will not agree to the amended terms if the company intends to remove the right of the noteholders to “put”these bonds prior to stated maturity. All terms within are still subject to 2/3 lender approval and the SEC still has yet to deem YRC’s registration effective.
imported_demastus
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Bad news for YRC Worldwide
Bad news for YRC Worldwide
Today's Financial News - Posted December 17, 2009
It is not good news for YRC Worldwide (NASDAQ:YRCW). As more bondholders refuse to swap for shares, the company’s hopes of success dwindle.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): By all traditional measurements, the stock is dead. The only reason shares are going for a buck each is due to artificial life support that cannot possibly last.
So the question is how long until they pull the plug on YRC Worldwide (NASDAQ:YRCW)? If we judge by the reaction from the company’s bondholders, a visit in front of a bankruptcy judge is not far away.
Let me preface all of this by letting you know right out of the gate I am a biased reporter.
Over at TFN Strategic Trader, we recently racked up gains of 94% playing the company’s ability to stave off the bankruptcy wolves. A well-timed covered call play was all we needed to lower risk and increase our reward.
But over two months since we pulled our gains and fled from the stock. Since then, a lot has happened. Actually, no, nothing has happened. That’s the problem.
Locking up the brakes
As a major trucking company, YRC needed the nation’s economy to come roaring back in a hurry. But ask any truck driver, railroad conductor or barge captain and they will tell you one thing.
”There is not much moving these days.” I heard the words first hand this week.
With shipping demand remaining close to the recession’s lows, YRC has little chance of finding a profit and the cash necessary to deal with its $3.5 billion worth of debt.
So, it did what any company would do. It kindly asked bondholders to turn the debt into stock. It was the equivalent of asking to trade a beat up old Ford for and even uglier old Huffy.
In bankruptcy, bondholders won’t get all they are owed, but they know they will get more than any shareholder. That’s why when the company recently offered a debt-to-equity exchange to its bondholders, they got a you-gotta-be-kidding-me response.
So far, YRC has been forced to “extend” its exchange deadline several times in hopes of pushing a few investors off the fence. If the deal doesn’t happen, they will pull the plug very soon.
YRC is on life support. Unless a miracle happens and bondholders make serious concessions, the company is trucking its way to bankruptcy court.
We made our money on the company. If you haven’t made your share, don’t try to do it now. There is trouble ahead.
Bad news for YRC Worldwide
Today's Financial News - Posted December 17, 2009
It is not good news for YRC Worldwide (NASDAQ:YRCW). As more bondholders refuse to swap for shares, the company’s hopes of success dwindle.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): By all traditional measurements, the stock is dead. The only reason shares are going for a buck each is due to artificial life support that cannot possibly last.
So the question is how long until they pull the plug on YRC Worldwide (NASDAQ:YRCW)? If we judge by the reaction from the company’s bondholders, a visit in front of a bankruptcy judge is not far away.
Let me preface all of this by letting you know right out of the gate I am a biased reporter.
Over at TFN Strategic Trader, we recently racked up gains of 94% playing the company’s ability to stave off the bankruptcy wolves. A well-timed covered call play was all we needed to lower risk and increase our reward.
But over two months since we pulled our gains and fled from the stock. Since then, a lot has happened. Actually, no, nothing has happened. That’s the problem.
Locking up the brakes
As a major trucking company, YRC needed the nation’s economy to come roaring back in a hurry. But ask any truck driver, railroad conductor or barge captain and they will tell you one thing.
”There is not much moving these days.” I heard the words first hand this week.
With shipping demand remaining close to the recession’s lows, YRC has little chance of finding a profit and the cash necessary to deal with its $3.5 billion worth of debt.
So, it did what any company would do. It kindly asked bondholders to turn the debt into stock. It was the equivalent of asking to trade a beat up old Ford for and even uglier old Huffy.
In bankruptcy, bondholders won’t get all they are owed, but they know they will get more than any shareholder. That’s why when the company recently offered a debt-to-equity exchange to its bondholders, they got a you-gotta-be-kidding-me response.
So far, YRC has been forced to “extend” its exchange deadline several times in hopes of pushing a few investors off the fence. If the deal doesn’t happen, they will pull the plug very soon.
YRC is on life support. Unless a miracle happens and bondholders make serious concessions, the company is trucking its way to bankruptcy court.
We made our money on the company. If you haven’t made your share, don’t try to do it now. There is trouble ahead.
spaghettijg
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Of course so noone can get holiday pay. I would close it right now to stick it up YRC's ***. Everyone will be working for free, because noone will be getting checks for this week's and next week's work. Ask those x-CF workers what CF did. CF shut down and they never paid out to the workers for the last 2 weeks of work.
Every single person I know received their 2 weeks pay! I was not one of them but the people who continued to work to clean out the system were paid also. I know your upset with all that has happened, but you really should get the facts straight about CF.
doubleduece
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Yes i agree
spaghettijg
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I've stated this in the past. Wait til Christmass or New Years, what people were in store for. Christmass seems more logic for YRC to shut down. Everyone will be with their families and it easier for YRC to shut the doors, without the dangers of violence from the workers on both parties, union and non-union employees.
I've stated this in the past. Wait til Christmass or New Years, what people were in store for. Christmass seems more logic for YRC to shut down. Everyone will be with their families and it easier for YRC to shut the doors, without the dangers of violence from the workers on both parties, union and non-union employees.
imported_mike
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I don't know if any of you watched Zollars' nice little speech about pushing the deadline but he never gave straight answers on his own questions. Seems like christmas will be the end 
Anyone want to buy a house for more than it's worth??
Anyone want to buy a house for more than it's worth??
I don't know if any of you watched Zollars' nice little speech about pushing the deadline but he never gave straight answers on his own questions. Seems like christmas will be the end
Anyone want to buy a house for more than it's worth??
security is already been hired for the 24th and 25th. All equipment will be on site as well ......
Bond exchange offer happens to expires the 23rd 11pm)(....COINCIDENCE??? hmmm
Company gone public stating NO MONEY to continue operations hmmmmm
after the 31st if they dont get the 85% of bondholders on board...hmmmmm
Shut down late night 23rd no need to pay holiday pay..,..sick days etc.hmmmm
dont look too good
screwedincol
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well brothers and sisters it was good while it lasted or should i say till we merged.to all a merry chirtmas and a yrc good night :TR10driving03: :TR10driving03:
I don't think we will be so lucky.
freightpimp
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don't hold back. let it all out:TR10driving03:-------------------------------------
Zollars suck my left nut - you ****'n piece of :: !