YRC Worldwide Reaches Agreement to Reduce Debt by $300 Million
"The agreement is a momentous step toward delevering the company's balance sheet, significantly improving the company's credit profile, and is expected to secure some of the best paying jobs in the LTL industry," said
Under the agreement, the investors will invest
"These transactions will result in a substantial reduction of our debt and will position the company to address impending maturities, including the 6% Convertible Notes due in
"We must now focus on the upcoming ratification vote and amendment and extension of the pension note as the two final steps in completing this major debt reduction transaction and reestablishing YRCW as a leader in the LTL industry. With a positive ratification vote and an amended and extended pension fund note, the improved financial picture will allow the company to increase its investment in new tractors, trailers, technology and equally if not more importantly training and developing its people. Alternatively, if we are not successful, it would unfortunately mean some very difficult decisions for the company and its employees," added Welch.
Important Information about the Proposed Transaction
This news release is for informational purposes only and does not constitute an offer to sell or buy, nor the solicitation of an offer to sell or buy, any of the securities referred to herein or therein and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. Any offer and sale of the common stock referred to herein or therein has not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in
Forward-Looking Statements
This news release and the Current Report on Form 8-K referenced herein contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about management's expectations with respect to consummating the proposed transaction and the impact of the proposed transaction on the Company. The words "will," "would," "anticipate," "expect," "believe," "intend" and similar expressions are intended to identify forward-looking statements. It is important to note that the proposed transaction described in this news release will be subject to a number of significant conditions, including, among other things, the ratification of the current proposal by the Company's employees who are IBT members, the amendment and extension of the pension fund note and the
satisfaction or waiver of the other conditions contained in the definitive agreements related to the proposed transaction and the lack of unexpected or adverse litigation results. The Company cannot provide you with any assurances that the conditions contained in the definitive agreements related to the proposed transaction will be satisfied or that the proposed transaction can be completed in the timeframes required under the Company's various agreements with its stakeholders. In addition, even if the proposed transaction is completed, the Company's future results could differ materially from any results projected in such forward-looking statements because of a number of factors, including (among others) the risk factors that are from time to time included in the Company's reports filed with the
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CONTACT: Investor Contact:Source:Stephanie Fisher 913-696-6108 investor@yrcw.com Media Contact:Suzanne Dawson LAK Public Relations, Inc. 212-329-1420 sdawson@lakpr.com
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