Yellow to Raise $150 Million for Roadway Purchase

Yellow Corp., Overland Park, Kan., announced it is seeking to raise -- subject to market and other conditions -- about $150 million from a private offering of contingent convertible senior notes.

An additional $50 million may be raised if the initial purchasers exercise their right to acquire additional notes in connection with the offering.
The notes will mature in 2023 and will be convertible into shares of Yellow common stock under certain circumstances.
Yellow said it will use proceeds from the offering to finance part of the proposed takeover of Roadway Corp. If the acquisition is not completed, the funds will be used for general corporate purposes.
Yellow operates the second largest LTL carrier in the U.S. and recently announced an agreement to acquire Roadway, Akron, Ohio, the nation’s largest LTL. Both companies have labor contracts with the Teamsters.