Yellow Roadway said it is aiming to raise about $250 million through a private offering of senior floating rate notes to help finance its $1.3 billion takeover offer for USF, according to a regulatory filing this week.
Earlier this month, Yellow Roadway increased the cash portion of its proposed acquisition offer, which would give USF shareholders about 65 percent cash and 35 percent Yellow Roadway stock.
The original offer was closer to a 50-50 structure.
The filing said proceeds from the proposed offering would be used to partially finance the cash portion of the offer.
The company intends to also use borrowings under a $450 million receivables financing facility, a $500 million senior unsecured revolving credit facility and cash on hand to finance the cash portion.