YRC Sees Interest Savings as Pivotal Union Vote Nears

YRC Worldwide Inc. may reduce its annual interest cost by as much as a third as the trucker negotiates the refinancing of almost $1 billion in debt that hinges on a union vote next month to accept contract givebacks.

Interest payments may be cut by $30 million to $50 million, from about $150 million a year now, after the refinancing is completed at the end of January, Chief Financial Officer Jamie Pierson said today in a telephone interview. He said talks with creditors are under way now to win lower interest rates.