YRC Worldwide Eyes $70 Million Capital Raise
February 12, 2010 (FinancialWire) — YRC Worldwide Inc. (NASDAQ: YRCW) said that it has entered into definitive agreements with investors who have agreed to purchase $70 million in new unsecured convertible notes in a private placement.
The company said it will use the proceeds from the issuance of these new notes to satisfy its remaining 2010 note obligations, with any excess proceeds available to be used for general corporate purposes.
YRC said the new notes have a term of four years with an interest rate of 6%, which is initially payable in shares of the company’s common stock.
The company said it expects the transaction to be fully funded into an escrow at closing to satisfy each of the company’s two maturity obligations in 2010. Kansas-based YRC Worldwide is a transportation service provider with a portfolio of brands including YRC, YRC Reimer, YRC Glen Moore, YRC Logistics, New Penn, Holland and Reddaway.
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