YRC Worldwide Inc., the trucking company with a large midstate presence, today saw its stock price drop more than 14 percent before 11 a.m. after the company said it planned to sell 3 million shares.
Kansas-based YRC is selling the shares — worth about $28.7 million based on the share price of $9.58 yesterday — to pay off part of its 2014 convertible senior notes that are scheduled to mature Feb. 15, according to the prospectus filed with the U.S. Securities and Exchange Commission.
At one point in this morning’s trading, YRC’s share price had dropped to $8.19, or about 14.6 percent less than yesterday’s closing price, before edging back up, according to Yahoo Finance. The company’s stock price had been on an upswing since Nov. 21, when it was trading at $7.38 a share.
YRC also is in negotiations with its unions represented by the Teamsters for a five-year contract extension. Local union leaders, including those from Central Pennsylvania, are scheduled to review the company’s proposal on Friday.
Lebanon-based New Penn Motor Express Inc. is a regional trucking subsidiary of YRC. The parent company also operates a large warehousing facility in Cumberland County.