YRC Worldwide (YRCW) Defines Terms of Possible $536.8M Exchange Offer

November 2, 2009 9:30 AM EST

YRC Worldwide Inc. (Nasdaq: YRCW) today announced that it intends to launch an exchange offer this week based upon terms discussed with representatives of a committee of the holders of its contingent convertible notes and a committee of the holders of its USF 8 1/2% notes. The successful completion of this exchange would allow the company open access to the existing $106 million revolver reserve and to begin deferring payment of lender interest and fees of approximately $25 million per quarter under its recently amended credit agreement and asset-backed securitization facility. The company currently has access to $50 million of the revolver reserve for certain operational purposes and the remaining reserve with a two-thirds approval from its lenders.

"We are pleased with the progress we've made with this group of key stakeholders in such a short amount of time. This group understands our comprehensive plan and the long-term value of this company," stated Bill Zollars, Chairman and CEO of YRC Worldwide. "The completion of the note exchange is an important milestone in our plan, which is expected to improve our cash flow and capital structure," Zollars continued.

In the aggregate and with full participation, noteholders would exchange approximately $536.8 million in face value of Notes plus accrued and unpaid interest for shares of common stock and new Class A Convertible Preferred Stock, which together on an as-if converted basis would represent 95% of the company's common stock, with a provision for options to be granted to the company's union employees pursuant to the company's recently ratified Amended and Restated Memorandum of Understanding on the Job Security Plan.

NOTE: the stock is halted.

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