YRC Worldwide Receives Significant Support for Debt-for-Equity Offers
-- 72% of Note Holders Have Tendered to Date
-- YRCW Extends Expiration Date for Additional Tenders Pending SEC Review
Overland Park, Kan., Dec. 9 /PRNewswire-FirstCall/ -- YRC Worldwide Inc. (Nasdaq: YRCW) announced today that a significant number of its note holders have tendered their notes pursuant to the company's debt-for-equity exchange offers. The company has extended the expiration date for the exchange offers until 11:59 p.m., New York City time, on December 15, 2009 to provide additional time for all conditions to the offers to be met. The Securities and Exchange Commission (SEC) has continued to review the company's Registration Statement on Form S-4 relating to the exchange offers and has not yet declared the Registration Statement effective, which is a condition of the offers, among others. The exchange offers include each of the following outstanding series of notes:
•the company's 5.0% Net Share Settled Contingent Convertible Senior Notes and 5.0% Contingent Convertible Senior Notes due 2023,
•the company's 3.375% Net Share Settled Contingent Convertible Senior Notes and 3.375% Contingent Convertible Senior Notes due 2023, and
•the 8 1/2% Guaranteed Notes due April 15, 2010 of the company's wholly owned subsidiary, YRC Regional Transportation, Inc.
The company said that it is encouraged by the response to the exchange offers, which the company commenced following several months of ongoing, active implementation of its comprehensive plan. The plan is designed to place the company on a more solid financial base with an enhanced capital structure and improved operations and cost structure, making it more competitive and well positioned to take advantage of any upturn in the economy. As of 11:59 p.m. on December 8, 2009, note holders tendered a total of 72% of the aggregate principal amount of the outstanding notes pursuant to the exchange offers, which is below the minimum percentage required as a condition to the offers.
The company will exchange the notes for shares of the company's common stock and new Class A convertible preferred stock in such amounts as are set forth in the company's Registration Statement on Form S-4, as amended, that the company originally filed with the SEC on November 9, 2009, which together on an as-if converted basis, if the note holders tender all of the outstanding notes in the exchange offers, would represent approximately 95% of the company's issued and outstanding common stock.
To validly tender their notes, the participating note holders will be required to become party to a mutual release with the company and consent to an amendment of the terms of the notes that would remove substantially all of the material covenants other than the obligation to pay principal and interest on the notes and those relating to the conversions rights of convertible notes, and eliminate or modify the related events of default.
-- 72% of Note Holders Have Tendered to Date
-- YRCW Extends Expiration Date for Additional Tenders Pending SEC Review
Overland Park, Kan., Dec. 9 /PRNewswire-FirstCall/ -- YRC Worldwide Inc. (Nasdaq: YRCW) announced today that a significant number of its note holders have tendered their notes pursuant to the company's debt-for-equity exchange offers. The company has extended the expiration date for the exchange offers until 11:59 p.m., New York City time, on December 15, 2009 to provide additional time for all conditions to the offers to be met. The Securities and Exchange Commission (SEC) has continued to review the company's Registration Statement on Form S-4 relating to the exchange offers and has not yet declared the Registration Statement effective, which is a condition of the offers, among others. The exchange offers include each of the following outstanding series of notes:
•the company's 5.0% Net Share Settled Contingent Convertible Senior Notes and 5.0% Contingent Convertible Senior Notes due 2023,
•the company's 3.375% Net Share Settled Contingent Convertible Senior Notes and 3.375% Contingent Convertible Senior Notes due 2023, and
•the 8 1/2% Guaranteed Notes due April 15, 2010 of the company's wholly owned subsidiary, YRC Regional Transportation, Inc.
The company said that it is encouraged by the response to the exchange offers, which the company commenced following several months of ongoing, active implementation of its comprehensive plan. The plan is designed to place the company on a more solid financial base with an enhanced capital structure and improved operations and cost structure, making it more competitive and well positioned to take advantage of any upturn in the economy. As of 11:59 p.m. on December 8, 2009, note holders tendered a total of 72% of the aggregate principal amount of the outstanding notes pursuant to the exchange offers, which is below the minimum percentage required as a condition to the offers.
The company will exchange the notes for shares of the company's common stock and new Class A convertible preferred stock in such amounts as are set forth in the company's Registration Statement on Form S-4, as amended, that the company originally filed with the SEC on November 9, 2009, which together on an as-if converted basis, if the note holders tender all of the outstanding notes in the exchange offers, would represent approximately 95% of the company's issued and outstanding common stock.
To validly tender their notes, the participating note holders will be required to become party to a mutual release with the company and consent to an amendment of the terms of the notes that would remove substantially all of the material covenants other than the obligation to pay principal and interest on the notes and those relating to the conversions rights of convertible notes, and eliminate or modify the related events of default.