By Paul A. Harris
St. Louis, May 19 - Yellow Roadway Corp. priced a downsized and restructured $150 million issue of three-year senior floating-rate notes (Ba1/BBB-) at par to yield three-month Libor plus 137.5 basis points, according to a market source.
Credit Suisse First Boston ran the books for the Rule 144A with registration rights issue.
Proceeds will be used to fund a portion of the $1.37 billion acquisition of Chicago-based regional trucking firm USF Corp.
The issue was downsized from $250 million. The tenor of the bond was decreased to three years from six years. Call protection was extended for the life of the bond from the original non-call-two-year structure.
The issuer is an Overland Park, Kan., transportation services company.
| Issuer: | Yellow Roadway Corp.
|
| Amount: | $150 million (decreased from $250 million)
|
| Maturity: | May 15, 2008 (tenor decreased to three years from six years)
|
| Security description: | Senior floating-rate notes
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| Bookrunner: | Credit Suisse First Boston
|
| Coupon: | Three-month Libor plus 137.5 basis points
|
| Price: | Par
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| Yield: | Three-month Libor plus 137.5 basis points
|
| Call protection: | Non-callable for the life of the bond (increased from two years)
|
| Trade date: | May 19
|
| Settlement date: | May 24
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
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