Plus   Neg

Stock Alert: YRC Worldwide Shares Surge 120% In Premarket On $700 Mln CARES Act Loan From UST

Shares of YRC Worldwide Inc. (YRCW) are soaring over 120% in pre-market today, after the company announced that the United States Department of the Treasury or UST intends to provide a $700 million loan to YRCW under authorization provided by Subtitle A of Title IV of the CARES Act.

The stock has been trading in the range of $1.29 - $4.79 for the past one year, and closed Tuesday's trade at $1.85, up 11 cents or 6.32%. YRCW is currenly trading at $4.07, up $2.22 or 120.00% in the pre-market session.

YRCW would receive a loan of $700 million in two tranches. The loan matures on September 30, 2024.

Tranche A of about $350 million, would be used to cover short-term contractual obligations and certain other obligations including pension and healthcare payments. The loan terms are LIBOR plus 3.5%, consisting of 1.5% cash and 2.0% payment in kind.

Tranche B of about $350 million, would be used for essential capital investment in trailers and tractors and is expected to carry an interest rate of LIBOR plus 3.5% in cash.

For comments and feedback contact: editorial@rttnews.com

Business News

Looking to Invest in the Best Biotech Stocks? Subscribe to RTT Biotech Investor.
Follow RTT