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YRC Worldwide Inc. Message Board

  • johns.patrick johns.patrick Dec 17, 2010 9:26 PM Flag


    So I think the BK is off the table for now. Next big hurdle is how much dilution. Trying to think about how to think about this:

    Company needs to raise $350 million, $300 to retire debt and $50 to give to Teamsters (they'll pay in stock not cash) so how many shares is that? Today the whole company is valued at 182 M so apparently the new shareholders have to beleive it is worth more than that right (at least the debt holders, the teamsters is just a give away anyway). If I have $300 M debt how much of this company am I willing to share to retire my debt? 25% between Union and current shareholders?

    If that were right they would issue another 450 million shares 400 for debt, 50 for union. Total outstanding would be 500 million shares. I think this company could make $50-75M in 13 or 14 so lets assume high and go $75M.

    75M/500M share = .15 per share x 8 = 1.20 value per share.

    That would value the debt at $480M (400M shares x 1.20 per share) a nice profit off $300M in debt.

    Is that more than debt would ask for or about right

    will Union get an amount = to existing shareholders or is that too high

    Does YRCW need to convert $300M or less

    Would a bank really do the conversion?

    Course the problem is that says our shares are only worth $1.20 under this concept, would the stock still hang near $4 if my thoughts are right (course GM kept trading until the bitter end and that was much more obvious than this deal)

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