By Devika Patel
Knoxville, Tenn., Feb. 24 - YRC Worldwide Inc. sold $49.8 million of unsecured convertible notes as part of a $70 million private placement on Tuesday, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal priced Feb. 11.
The four-year notes bear 6% interest and are convertible into common stock at an initial conversion price of $0.43.
Beginning Feb. 23, 2012, the company can force conversion of the notes if its common stock closes at 150% of the conversion price or more for 20 out of any 30 consecutive trading days.
Proceeds will be used to satisfy the company's remaining 2010 note obligations, with any excess proceeds available to be used for general corporate purposes.
YRC is an Overland Park, Kan.-based provider of transportation services for the shipment of industrial, commercial and retail goods.
| Issuer: | YRC Worldwide Inc.
|
| Issue: | Unsecured convertible notes
|
| Amount: | $70 million
|
| Maturity: | Feb. 23, 2014
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $0.43
|
| Call option: | Non-callable, but conversion can be forced after Feb. 23, 2012 if stock is 150% of conversion price for 20 out of 30 trading days
|
| Warrants: | No
|
| Pricing date: | Feb. 11
|
| Settlement date: | Feb. 23 (for $49.8 million)
|
| Stock symbol: | Nasdaq: YRCW
|
| Stock price: | $0.67 at close Feb. 10
|
| Market capitalization: | $23.5 million
|
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