Fleet Management

YRC Considers Refinancing Debt Amid Continuing Losses

August 08, 2013

By Evan Lockridge

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After nearly filing for bankruptcy more than once in recent years and with financial losses that aren’t stopping, the parent of the trucking company, YRC Freight, along with others, is looking at restructuring its debt yet again.

Photo: Evan Lockridge
Photo: Evan Lockridge

YRC Worldwide has retained Credit Suisse and The Mavea Group to look at its refinancing and recapitalization options with debt maturities coming due in 2014 and 2015. This would be its second refinancing in two years while this week it reported its ninth loss out of the last 10 quarters.

Currently the less-than-truckload giant has nearly $1.3 billion in debt but only $219 million in cash and equivalents.

Earlier this week YRC Worldwide reported a loss for the second quarter of the year, though it was less that what it had the same time a year ago. Despite this the news sent company stock 18% lower on Wednesday.

YRC has filed a registration with the Securities and Exchange Commission to allow for the sale of $350 million in stocks and bonds to raise money, but there is no date for the sale.

Comments

  1. 1. john [ August 09, 2013 @ 05:50PM ]

    What overall good is a union, if they can't work with both sides to try to keep a business open? The employees must be willing to give a little in order to keep a paycheck coming in. If their wages and benefits continue to increase, eventually the company will close their doors. Then, guess what? No paycheck or benefits!

  2. 2. reaganhater [ August 19, 2013 @ 08:11AM ]

    Get your facts straight before you speak john. The union has given 15% in wages 1 week of vacation and also no contribution to our pension.

  3. 3. Teamster [ September 10, 2013 @ 07:21PM ]

    John, your presumptive comment is completely off base. The bargaining unit employees at YRC voted in favor of a 15% hourly wage cut, a 75% cut in hourly pension contributions, a loss of one week vacation pay, and changes in work conditions that allow the company to circumvent hiring new employees by mandating 12 hour work days. There have also been numerous operational changes that have displaced many employees. The Teamsters Union has been more than accommodating to the company. So really, you're way off here, YRCs executives owe the rank and file employees a debt of gratitude for voting in favor of concessions that have allowed them to enjoy a life style of comfort. If you feel ambitious enough to check the facts please feel free to check the presidents (Jeff Rogers) salary increase of approximately 300% over the last couple years.
    Good day sir.

  4. 4. Pete [ October 29, 2013 @ 03:49AM ]

    YRC has the most lazy employees and deserve whatever they get

  5. 5. Jeff [ November 25, 2013 @ 08:40PM ]

    If you only knew what upper management got paid and the stock options they received you would be beside your selfs .
    I know of one guy in sales that was just vested into Roadway and his retirement will be worth $800k

 

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