YRC Worldwide Inc (YRCW)

[yesmistermorningstar]

Goodday Big !

Happy to see you back on the board ! Allways appreciated your quality insights on the trade and your view.

Any thoughts on the 29,6% equity stake in YRC of fully diluted common shares held in a voting trust ? How will theybe issued ?

Also do you know how the 2.5% interest payments in kind works ? Will the get more shares ?

It also says no principal repayment to be required until both loans mature in 2024. This sounds positive for YRC to deal with any headwinds for the next 4 years and 3 months.

The Treasury Department is prohibited from exercising voting power of any of the shares it owns. The shares will be held in a voting trust and voted in a way that is proportionate with how the company's other shares are voted.

Tranche A will be used to fund “short-term contractual obligations,” including the aforementioned pension and healthcare payments. This tranche carries a rate of LIBOR plus 3.5% with interest payments requiring 1.5% cash and 2% payment in kind. Tranche B allows the company to fund capital expenditures (capex) on tractors and trailers. This tranche will carry the same interest rate but require all cash repayment. No principal repayment appears to be required until both loans mature on September 30, 2024.

YRC will amend existing credit facilities to permit the new loans. The agreement was entered into on June 30.

YRC will issue the Treasury Department shares of common stock, which are expected to represent a 29.6% equity stake in the company. YRC said it is relying on “Nasdaq’s temporary COVID-related exception” to bypass stockholder approval requirements.