Yellow selling bonds to finance merger
Nov 19, 2003 12:00 PM
Yellow Corp. plans to privately sell $130 million of 20-year senior convertible bonds to help finance its $966 million merger with Roadway Corp., company officials said today. They said that the Overland Park, Kansas-based firm may sell an additional $20 million of the bonds to meet demand. Its bonds are "contingent," which means that the underlying shares must rise a certain percentage above the official "conversion" price before bondholders may convert. Roadway and Yellow are each scheduled to hold special stockholder meetings on Dec. 9 to consider approval of the transaction.
