Shares of YRC Worldwide (YRCW) took a beating in Thursday trading — dropping by more 21% at their worst point — after the Teamsters union said a critical contract extension might be voted down by members.
Bloomberg reported that the trucking company plans to use the loans to refinance its existing debt — $1.4 billion, on which it’s paying $150 million in interest payments a year — by “as much as a third,” according to CEO Jamie Pierson.
The new loans for YRC Worldwide are contingent on a vote by the Teamsters union to extend its current contract with YRC Worldwide to 2019.
Although results of the vote won’t be released until later today, the Teamsters union said that early returns suggested that its extension with YRC Worldwide seemed unlikely.
YRCW stock fell more than 70% between July and November as its financial problems mounted, but YRCW stock had regained some ground since December.