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, 2003 to consider approval of the transaction.
