February 13, 2014 / 11:11 PM / 4 years ago

Trucker YRC Worldwide refinances $1.1 billion debt

Feb 13 (Reuters) - Struggling trucking company YRC Worldwide Inc said it refinanced debt of $1.1 billion, completing a restructuring it began nearly three years ago.

The company closed a $300 million debt reduction plan in January after the Teamsters Union agreed to a revised labor contract.

An earlier rejection by the union had put the restructuring plan in jeopardy ahead of the first debt repayment of $69.4 million due on Feb. 15.

YRC, which had debt of about $1.36 billion, on Thursday completed the refinancing with a new $700 million medium-term loan and a $450 million asset-based loan.

The company said the refinancing extends the tenure to 2019 and would provide interest savings of about $40 to $50 million annually.

YRC’s shares rose 1.5 percent in extended trading. They closed at $20.95 on the Nasdaq.

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