Yellow Corp. said that it is seeking to raise approximately $150 million through a private offering of contingent convertible senior notes and would use the proceeds to finance its proposed purchase of LTL rival Roadway Corp.
The company said that if the acquisition of Roadway is not completed, the proceeds instead would be used for general corporate purposes.
Yellow announced in July it would purchase Roadway in a deal that will be worth $1.1 billion. Yellow chairman, president & CEO Bill Zollars will assume the same role with Yellow-Roadway Corp. James D. Staley, currently president & CEO of Roadway, will continue to lead Roadway, which will be an operating entity of the merged holding company.
Yellow and Roadway said they plan to continue operating as separate brands.
