YRC Worldwide Files To Raise Capital (YRCW)

YRC Worldwide Inc. (NASDAQ: YRCW) has not been without its  problems.  We recently saw reports about how it was trying to raise funds from the government and we have just seen an SEC filing in a shelf registration.  This filing shows that the trucking giant plans to raise up to $200 million via the sale of any combination of common stock, preferred stock, and warrants.

The company said that it may offer and sell these securities to or through one or more underwriters, dealers, and agents, or directly to purchasers, on a continuous or delayed basis.  It also released a statement that no specific financing is imminent but this was to have an effective shelf registration.  Here is the FULL FILING from the SEC.

The use of funds is for general corporate purposes, described as capital expenditures, working capital, acquisitions, repayment or refinancing of indebtedness, investments in subsidiaries, or repurchasing or redeeming securities.

We also saw in recent days that the company received certain credit waivers under its bank agreement.

As with many shelf registrations, no underwriters were named.  Shares are down about 9% at $2.88 today, and the 52-week range is $1.20 to $22.52.

JON C. OGG
MAY 20, 2009