Seeking Alpha

YRC future looking calmer after fundraising

  • YRC Worldwide (YRCW) has raised $300M in shares, which will allow the trucking company to repay part of its $1.4B debt, including $69M that is due this month. The firm is also set to receive loans of $1.15B by the end of February.
  • YRC sold $250M worth of stock and converted $50M of bonds into shares.
  • The fundraising came after Teamsters approved a labor agreement on Monday in vote that enabled the financing to take place.
  • "We'll have nothing but clear air and runway for us to focus in on operations for the next five years," says CFO Jamie Pierson.
Comments (6)
  • Michael Bryant
    , contributor
    Comments (5429) | Send Message
     
    5 years! Woohoo! Long (YRCW).
    2 Feb, 02:00 AM Reply Like
  • Verge Of Bankruptcy
    , contributor
    Comments (24) | Send Message
     
    It's certainly good news for bondholders, management, employees and suppliers. Not exactly sure it's good news for current shareholders. The company is about to dump tons of new shares onto the market. And in this latest debt-to-equity swap, YRCW valued its own shares at a measly $15!
    2 Feb, 07:44 AM Reply Like
  • leopardtrader
    , contributor
    Comments (888) | Send Message
     
    One good turn around story. Made some money here..looking to join again on any massacre again lol Easy to $50 and beyond in the next few years
    2 Feb, 09:05 AM Reply Like
  • Bouchart
    , contributor
    Comments (760) | Send Message
     
    Why would anyone want to be a shareholder of this company? All YRC has ever done in the past several years is dilute.
    2 Feb, 01:47 PM Reply Like
  • 4532
    , contributor
    Comment (1) | Send Message
     
    wait when we see how much money they loose from all the bad weather
    2 Feb, 09:55 PM Reply Like
  • Landon Romano
    , contributor
    Comments (40) | Send Message
     
    Be patient. $50 value remains in spite of dilution. Approximate $1 billion value divided by approximate 20 million shares when diluted remains $50 per share. Clearly think about this fact: debt converted to equity reduces principle and interest payments, which translates to higher net income. The company has conducted an excellent turnaround with reduced expenses, increased efficiency and the ability plow back into the company to further increase value. Patience can be a painful virtue. But it is rewarding to those who do their homework and go long with competence and confidence.
    5 Feb, 03:25 AM Reply Like
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