YRC Worldwide Inc (YRCW)

[MagicCap]

Refinancing Debt in Future:

Expect something similar to this to happen to YRCW in 2014...after they have reported several quarters in a row of positive EPS:

http://finance.yahoo.com/news/susser-holdings-refinance-senior-notes-202900418.html

As I mentioned before, just the convertible notes alone, when converted, will boost EPS by over $1.00 fully diluted (using 22 million shares). For each 1% lower interest rate they get on their remaining debt ($1.1 billion after excluding convertible notes) they will boost EPS by $0.50.

I could easily paint a picture over the next 3 years where they convert all notes, return to profitability and slowly repay debt, refinance their remaining debt and generate in excess of $5 EPS. All based on marginal growth (i.e., 2 to 5%) on the top line.