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YRC Worldwide shares jump on $300M debt reduction

The Associated Press

Shares of YRC Worldwide Inc. jumped Monday after the trucking company said it reached a deal to cut its debt by about $300 million.

THE DEAL: The Overland Park, Kan., company said it will raise money by selling $250 million in common stock to investors at $15 per share. Additionally, bondholders of about $50 million in debt due March 2015 will have their bonds converted to common stock for between $15 and $16.01 per share.

YRC Worldwide is reducing debt to meet a condition some of its workers require to pass a contract. Members of the union, the International Brotherhood of Teamsters, will vote Jan. 8 on whether to approve the contract.

SHARES: Up $3.60, or 24 percent, to $18.57 in afternoon trading Monday. Its shares have more than doubled from a year ago.