YRC issues 1.7 million shares to pay down debt

YRC expects to gain about $5.3 million from the exchange of stock. The cancellation of the debt will save the company about $600,000 per year in interest, YRC added.

The Associated Press

10/20/2008

NEW YORK — YRC Worldwide Inc., one of the nation’s largest trucking companies, said Friday it issued 1.7 million shares of its common stock in exchange for about $13.2 million in convertible senior notes due 2023.

The company said it exchanged the notes to reduce debt and interest costs, increase net income and improve leverage.

YRC expects to gain about $5.3 million from the exchange.

The cancellation of the debt will save the company about $600,000 per year in interest, YRC added.

“In response to the continued unrest in financial markets,” the company said it will consider additional exchanges “and other prudent actions” to pay down debt.

YRC shares rose 14 cents, or 3.1 percent, to $4.51 in morning trading.