YRC Worldwide draws on credit line to repay notes

Bill Zollars, chairman, president and CEO of YRC Worldwide, said unrest in the credit markets prompted the company to redeem outstanding notes due Dec. 1 and May 1, 2009.

The Associated Press

10/3/2008

OVERLAND PARK, Kan. — YRC Worldwide Inc., one of the nation’s largest trucking companies, said Friday that it drew on a credit line to repay some debt that matures this year and in 2009.

The company said that on Thursday it drew down $325 million on a senior revolving credit facility, which matures in 2012.

It plans to use the money to redeem all of the outstanding $225 million 8.25 percent senior notes due Dec. 1 and its entire outstanding $100 million 6.5 percent senior notes due May 1, 2009.

The redemption of the notes is set for Nov. 3.

“Given the unrest in the credit markets, we believe it is in the best interest of YRC to satisfy these maturities early,” Bill Zollars, chairman, president and CEO of YRC Worldwide, said in a statement.

He said the company’s current financial position is solid, adding that it has no further note maturities until 2010.

After taking into account Thursday’s draw, the company has nearly $400 million of borrowing capacity remaining under its credit facilities.