OVERLAND PARK, Kan. — YRC Worldwide, one of the country's largest trucking companies, said Thursday investors have agreed to buy $70 million in new unsecured convertible notes in a private placement.
The proceeds from the debt issuance will be used to satisfy the company's remaining 2010 note obligations, with any excess proceeds available to be used for general corporate purposes.
The company said in a statement that the new notes have a term of four years with an interest rate of 6 percent, which is initially payable in shares of the company's common stock.
The deal is subject to the conversion of the company's preferred stock into common stock. YRC Worldwide will be holding a special shareholder meeting on Feb. 17, at which it will seek approval to increase the company's authorized shares to permit the preferred stock conversion.
Kevin Jones of The Trucker staff can be reached for comment at email@example.com.
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