Ahead Of The Bell: YRC Worldwide Advances
NEW YORK (AP) ¿ Shares of YRC Worldwide Inc. climbed sharply in premarket trading Tuesday after the trucking company said it has amended a $950 million credit agreement with lenders, another critical step in the company's struggle to avoid a possible bankruptcy filing.
The credit agreement amendment suspends the requirement that the company maintain liquidity of $100 million at all times. The covenant is suspended until Oct. 13.
The trucker said in a filing with the Securities and Exchange Commission that JPMorgan Chase Bank, among other lenders, will continue to provide YRC with a $950 million senior revolving credit facility, including portions available for borrowing and for letters of credit, and a senior term loan of about $111.5 million.
The company has amended other credit agreements, sold real estate, cut thousands of jobs and trimmed wages among existing workers to stay afloat.Stifel Nicolaus & Company analyst David Ross on Monday reiterated his "Sell" rating on shares of YRC Worldwide. In a note to clients, he said the amendment was no surprise and the company should still be challenged to maintain adequate liquidity after Oct. 13 if there are no further amendments. Ahead of Tuesday's market open, shares of YRC advanced 39 cents, or 17.5 percent, to $2.62. The stock has ranged from 89 cents to $19.61 over the past year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV