- Satisfies All Note Maturities Until 2010
OVERLAND PARK, Kan., Oct. 3 /PRNewswire-FirstCall/ -- YRC Worldwide Inc.
(Nasdaq: YRCW) announced today that on October 2, 2008 the company drew down
$325 million on its senior revolving credit facility, which matures August 17,
2012. The company plans to use the funds to redeem all of the outstanding
$225 million 8.25% senior notes due December 1, 2008 and its entire
outstanding $100 million 6.5% senior notes due May 1, 2009. The redemption of
the notes is scheduled for November 3, 2008.
'Given the unrest in the credit markets, we believe it is in the best
interest of YRC to satisfy these maturities early,' stated Bill Zollars,
Chairman, President and CEO of YRC Worldwide. 'Our current financial
condition is solid; and with no further note maturities until 2010, we are
well positioned to weather this economic environment.'
As the note redemptions and the draw on the senior revolving credit
facility will occur in the same quarterly reporting period, the company does
not expect these specific actions to have an affect on its aggregate
outstanding indebtedness at the end of the fourth quarter 2008. The company
expects to remain in full compliance with all terms of its credit agreement.
After taking into account the October 2, 2008 draw, the company has nearly
$400 million of borrowing capacity remaining under its credit facilities. In
addition, these redemptions will satisfy all of the company's significant
maturities through March 2010.
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Words such as 'expect(s)',
'believe(s)', 'will', 'plan(s)' and similar expressions are intended to
identify forward-looking statements.
The company's actual future results could differ materially from those
projected in such forward-looking statements because of a number of factors,
including (among others) inflation, inclement weather, price and availability
of fuel, sudden changes in the cost of fuel or the index upon which the
company bases its fuel surcharge, competitor pricing activity, expense
volatility, including (without limitation) expense volatility due to changes
in rail service or pricing for rail service, ability to capture cost
reductions, including (without limitation) those cost reduction opportunities
arising from acquisitions, changes in equity and debt markets, a downturn in
general or regional economic activity, effects of a terrorist attack, labor
relations, including (without limitation), the impact of work rules, work
stoppages, strikes or other disruptions, any obligations to multi-employer
health, welfare and pension plans, wage requirements and employee
satisfaction, and the risk factors that are from time to time included in the
company's reports filed with the Securities and Exchange Commission, including
the company's Annual Report on Form 10-K for the year ended December 31, 2007.
The company's expectation regarding its compliance with the company's
credit agreement is only the company's expectation regarding such compliance.
The ability of the company to comply with the terms of its credit agreement
could be affected by a number of factors, including (among others) the factors
identified in the preceding paragraph, the timing of the company's cash
receipts and expenditures and the lack of any unanticipated liabilities
maturing, contingent or otherwise.
YRC Worldwide Inc., a Fortune 500 company and one of the largest
transportation service providers in the world, is the holding company for a
portfolio of successful brands including Yellow Transportation, Roadway,
Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF
Glen Moore. The enterprise provides global transportation services,
transportation management solutions and logistics management. The portfolio of
brands represents a comprehensive array of services for the shipment of
industrial, commercial and retail goods domestically and internationally.
Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately
59,000 people.
SOURCE YRC Worldwide Inc.
