YRC Worldwide Inc. (NASDAQ: YRCW) said Thursday it has completed a debt-for-equity exchange with its bondholders, according to Associated Press.
The exchange allows for one of the nation's largest trucking companies to steer clear of filing for bankruptcy protection.
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The company said $470 million of its outstanding debt was tendered by holders, which it will exchange with 37 million common shares and about 4.3 million convertible shares.
The tenders represent approximately 88 percent of the company's outstanding notes, including $105 million, or 70 percent, of its 8 1/2% notes, $217 million of its 5.0% notes, and $148 million of its 3.375% notes. This represents 94 percent of aggregate total of the 5.0% and 3.375% Notes.
With the debt-to-equity swap completed, the company will be able to defer approximately $19 million in lender interest and fees that had been due Thursday and will have access to a $159.8 million credit line.
The company also said it expects to defer $20 million to $25 million in additional lender interest and fees per quarter during 2010.
Earlier this month, the company announced that it needed access to a $106 million standby credit line and permission from its lenders to delay a $19 million payment in order to avoid bankruptcy.
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