YRC cancels debt tender, announces leaseback deal

YRC Worldwide Inc (YRCW.O) said on Wednesday it canceled a debt tender because its union workers have not yet ratified a wage reduction. The U.S. trucking company also announced a $150.4 million contract to sell and lease back some of its facilities.

The company is also holding talks with its banking group on modifying some terms of its credit agreement, the company said in a filing with the U.S. Securities and Exchange Commission.

YRC said in late November it would spend up to $100 million on buying up to $230 million in debt at a discount. But in Wednesday's filing, the Overland Park, Kansas company said it canceled the tender because the union had not agreed to a wage reduction by the time the tender expired on Dec 23.

Under the lease back deal with NATMI Truck Terminals LLC, YRC will pay $21.1 million to lease the facilities, with increases subject to changes in inflation.

YRC, the No. 1 U.S. trucking company, also said that up to Nov 30, its fourth quarter daily tonnage at its national and regional businesses fell 11.8 percent and 11 percent, respectively.

Like the rest of the U.S. trucking sector, YRC's sales have been hit hard by the slowing U.S. economy, pushing down freight volumes and forcing trucking companies to cut prices to get business.