YRC Worldwide has extended its debt-for-equity exchange offer to Dec. 23 and amended the terms.
In a statement Thursday, the less-than-truckload carrier said the previous 95% approval rate from note holders that was needed to make the swap effective has been lowered to 70% for $150 million in notes that mature in April and 85% for $386.8 million in other notes.
YRC’s exchange offer is the less-than-truckload carrier’s latest bid to overcome financial challenges in the wake of mounting losses over the past two years. It has previously cut wages, consolidated operations and sold assets to lower costs and raise cash.
A completed debt-for-equity exchange and lender approval are needed for YRC to continue using parts of its credit and asset-backed securitization agreements, gain more access to cash and lower interest costs.
The company said a committee of lenders has agreed to accept a lower percentage of notes tendered, though the change must be approved by two-thirds of all lenders before it can take effect.
If the exchange is completed, note holders could control as much as 95% of YRC stock.
The company’s credit agreement also was amended on Wednesday.
YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
