Tuesday, December 08, 2009

Outcome of YRC trucker bond exchange in question

* Debt exchange expires on Dec. 8

* Successful swap would reopen $106 mln revolver reserve

* YRC shares drop 4 cts to $1.14

Market observers were expressing skepticism on Monday that troubled U.S. trucking giant YRC Worldwide would be able to pull off a critical debt exchange offer that expires Tuesday, though company officials have expressed confidence the deal would be successful.

Shares of Overland Park, Kansas-based YRC closed down 4 cents at $1.14 on the NASDAQ on Monday as investors weighed the likelihood of a successful exchange, which for YRC requires 95 percent of bondholders to approve the deal.

"I'd be shocked if they get 95 percent," said Dahlman Rose analyst Jason Seidl. "The question is can they get enough so that the lenders will sign off on it."

YRC, the nation's top less-than-truckload carrier, has been struggling to stay out of bankruptcy, laying off thousands of workers and cutting deals with labor and lenders to stay afloat. Full Story....

No comments: