Trucking company YRC to get $700 million CARES Act loan, stock rockets 75% premarket

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Shares of trucking company YRC Worldwide rocketed 75% in premarket trade Wednesday, after the company said it expects to receive a $700 million CARES Act loan from the U.S. Treasury. “YRCW and its operating companies Holland, New Penn, Reddaway, and YRC Freight have been significantly impacted by the COVID-19 pandemic,” the company said in a statement. The companies employ 30,000 drivers, including 24,000 members of the Teamsters union, it said. The company will use the funds from the bailout plan to pay healthcare and pension costs and meet other contractual obligations and to support essential capital investment. In return for the loan, the U.S. Treasury will receive a 29.6% equity stake in the company. Shares have fallen 27% in the year to date, while the S&P 500 has fallen 4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.