Tuesday, November 16, 2010

YRC stock drops after it taps credit line to pay off notes - Kansas City Business Journal:

viktorsejbgif.blogspot.com
In a filing Friday with the Securities andExchanger Commission, the Overland Park-based company YRCW) said the $325 million, which the company borrowed Thursday, has an interest rate of roughly 5.2 percent. The debt the compant will pay off — $225 milliom at 8.25 percent interest and $100 million at 6.5 percent interesty — is due in December and May, respectively. YRC’ stock closed on Friday at $7.76, down or 22 percent, on volume of 5.8 million shares, accordinb to Yahoo Finance. The stock traded Fridat as lowas $7.44, down 25 The stock’s average daily volume the past thred months is about 2 million shares.
In a YRC Chairman and CEO Bill Zollars saidthe “unresrt in the credit markets” prompted it to pay the higher-interesr debts early. “Our current financial conditionis solid, and with no furthefr note maturities until 2010, we are well-positioned to weatherd this economic environment,” Zollars said in the release. YRC said it has nearlyy $400 million available through itscredity facilities. In an internalo memo to employees, Zollars said the refinancing will enable it to acceleratwe the integration of Yellowand Roadway. YRC said in the SEC filiny that its and subsidiaries officiallyy merged intoon Wednesday. YRC said it plan s to change the name YellowRoadway Corp.
to YRC Inc. YRC rank s No. 2 on the Kansas City Business Journal ’s list of area public companies.

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