YRC Worldwide Inc. said Thursday, Dec. 17, that it was changing the terms of a debt-for-equity exchange offer, including again extending the deadline for bondholder approval. The Overland Park, Kan.-based company said it was lowering the minimum tender condition after not obtaining 95 percent of bondholder participation in the proposed $536.8 million exchange.
Under the new exchange terms, participation from 70 percent of the aggregate principal amount outstanding of the company’s 8-1/2 percent notes and from 85 percent of the aggregate principal amount outstanding of the 3.375 percent notes and the 5 percent notes on a combined basis will be needed. YRC also extended the expiration date to Wednesday, Dec. 23, at 11:59 p.m. ET.
YRC said lenders holding commitments of at least 66-2/3 percent under the credit agreement will be required to approve the revised minimum tender condition, and that it already had reached a tentative agreement with a steering committee representing the lender group. The company said it also needs the approval of multiemployer pension funds that have deferred at least 90 percent of the deferred contributions.
The company said its liquidity position would become unsustainable if a successful exchange of debt for equity is not made prior to Dec. 31, when it would have to make a $19 million fee payment to lenders and lose access to a $106 million credit line.