Events Calendar
In This Section
Most Read Stories
Akron judge Linda Kersker dies
DiLullo's closes doors after 63 years
Portage man beaten at home, robbed of coins
Akron police arrest murder suspect within an hour
Call center to cut 250 jobs in Akron
Rib, White and Blue is festival of tastes
Man fit for trial in rape of girl, 2
UPDATE: Deadly motorcycle crash closes I-76
Blogs:
Pets:
Summit teams up with Rescue Waggin' to save dogs
The Heldenfiles:
I Hate "More To Love"
Patrick McManamon:
Ron Artest goes to the Lakers
Akron Zips:
Opponent outlook: Northern Illinois
Browns Bulletin:
Single-game ticket sales begin July 11
Tribe Matters:
Tribe needs to slow down opponents
Cleveland Browns:
Stallworth test showed marijuana
Kent State Sports:
Men's Basketball Scheduling update
Cleveland Cavaliers:
Updated: Free Agency: Another Gone - Apparently
All Da King's Men:
IPCC Already Wrong About Global Warming
Blog of Mass Destruction:
Wow….Sarah Palin Resigns Governorship
Akron Law Café:
Abraham Lincoln and the Fourth of July
Varsity Letters:
Highland senior receives honor
See Jane Style:
Picnic Wear
Car Chase:
Where do We Go from Here?
Let's Talk Real Estate:
Hate Crime in Fort Worth Texas: "That F***t had it Coming"
Ohio Travels with Betty:
Linda asks-where is the Ohio Chautauqua?
Sound Check:
Rundgren fans rejoice!: Second night of AWATS at The Civic added
HRLite House:
Sport Psychology and Performance Consulting
Akron Gamer:
Hot link: Best of Nintendo at E3
Company draws $325 million to cover notes due Dec.1 and May 1. Others don't mature until 2010
By Angela Greiling Keane
Bloomberg News
Published on Saturday, Oct 04, 2008
YRC Worldwide Inc., the biggest U.S. trucking company by sales, drew $325 million from its revolving credit facility to redeem notes that are due Dec. 1 and May 1.
YRC wanted to pay off the debt early ''given the unrest in the credit markets,'' Chief Executive Bill Zollars said.
YRC, which is based in Overland Park, Kan., and operates its Roadway unit in Akron, said it will have almost $400 million of untapped borrowing capacity.
''Our current financial condition is solid, and with no further note maturities until 2010, we are well positioned to weather this economic environment,'' Zollars said.
Analysts and investors have been watching YRC's debt as banks have tightened lending practices. YRC stock fell $2.15, or 22 percent, to $7.76.
It was the biggest one-day drop since 1980.
Stifel Nicolaus & Co. analyst David Ross said in a Sept. 24 note to investors that he expected YRC to use cash to pay off the notes due in December.
''Management also mentioned evaluating capital markets to address upcoming maturities and diversify its capital structure,'' he wrote.
''We are not sure what that means for the company's future capital structure or how receptive the capital markets would even be to a YRC Worldwide issue in this credit market.''
Ross, who is based in Baltimore, has a ''sell'' rating on the trucker.
YRC reported $61.3 million in cash and near-cash items through June, according to data compiled by Bloomberg News.
YRC said it has $225 million in 8.25 percent notes due Dec. 1 and $100 million in 6.5 percent notes due May 1. Its next scheduled debt payment is $150 million in April 2010.
YRC Worldwide Inc., the biggest U.S. trucking company by sales, drew $325 million from its revolving credit facility to redeem notes that are due Dec. 1 and May 1.
Get the full article here.
Comments
Click here to post your comments
