December 8, 2008: The proposed concession agreement with YRC contains a provision to set up a trust with stock warrants equal to 15% of YRCW’s outstanding stock. What does this mean for Teamsters?
Freight FAQ: Click on the image to download a leaflet answering Frequently Asked Questions on stock warrants.Here are some answers to frequently-asked questions about this part of the Yellow Roadway concessions deal. What is a stock warrant? It is an option to buy YRCW stock at a future date, at a locked-in stock price equal to the price on the date (approximately Jan. 1) the deal becomes effective. Would I own some YRCW stock? No. First, this warrant would be held by a trust, not by individual employees. Second, it is not stock ownership, but an option to buy, if the stock goes up. How much is it worth? The warrants cover stock worth about $48 million. However, it is worth zero unless the stock goes up, because the warrant value equals the future stock price minus the locked in stock price. Thus, if YRCW stock doubles in value, the warrants would be worth about $48 million. How much would YRCW stock have to go up to make it equal to our concessions? Over the next 4.25 years, Teamsters
