YRC Worldwide to tender for 8½% notes, 5%, 3.375% convertibles

By Susanna Moon

Chicago, Nov. 24 - YRC Worldwide Inc. said it plans to further reduce debt and improve earnings by beginning a tender offer Tuesday to purchase its 5% and 3.375% contingent convertible senior notes due 2023 and its 8½% senior notes due 2010 for up to $100 million in cash.

The company said it had previously drawn on its senior credit facility to fund the purchases.

Based on set offer prices and assuming sufficient participation, the company expects to purchase at least $230 million principal amount of notes resulting in a total debt reduction of at least $130 million.

"Given the deteriorating economic environment, we have implemented a comprehensive program to improve our competitive position, increase our profitability and enhance our financial condition," Bill Zollars, chairman, president and chief executive officer of YRC Worldwide, said in a statement.

Other components of the company's plan include the continued successful integration of Yellow Transportation and Roadway, sales of excess real estate, sales and leasebacks of real estate and significant cost reduction actions.

YRC Worldwide, formerly known as Yellow Roadway Corp., is a transportation service provider based in Overland Park, Kan.

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