Marc Lasry Cuts Stake In YRC Worldwide Inc (YRCW) and Sells 1.40 Mln Shares

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Marc Lasry and his fund, Avenue Capital, have struck an agreement with UBS Securities LLC to sell 1.4 million shares of YRC Worldwide Inc (NASDAQ:YRCW). According to a recent filing with the Securities and Exchange Commission, the transaction is set to be completed by August 11 at a nominal price of $19.71 per share, thus bringing $27.6 million into the Avenue Capital’s coffers. As a result, Lasry and his fund are left holding 5.87 million shares which account for 17.9% of the company’s common stock. Prior to this transaction, YRC Worldwide Inc (NASDAQ:YRCW) represented the second-largest holding of Avenue Capital, so why has Lasry decided to reduce his stake?


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YRC Worldwide Inc (NASDAQ:YRCW) is a provider of transportation services with a global presence and has a market cap of $658 million. The company has recently released its second quarter financial report, showing signs of improving financial health. YRC Worldwide posted revenues of $1.26 billion and earnings per share of $0.78, easily beating the estimates of $0.25 per share. For the current quarter, analysts expect revenues of $1.25 billion and earnings of $0.49 per share. Although the latest financial report is mostly positive, the company’s debts continue to pose problems, while the management has been working hard to avoid bankruptcy for several years now. Still, the company is not in a hurry to repay its debt and has chosen to invest the available cash to improve its fleet:

“I’m certain there will be a couple of hiccups […] but we’re going to continue to focus on increasing prices, we’re going to continue to double down on our investments in technology […] and continue to invest in our people,” said Jamie Pierson, Chief Financial Officer of YRC Worldwide.

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