MONTREAL, Oct. 12 /CNW Telbec/ - TransForce Income Fund (TSX: TIF.UN),
the leader in the Canadian transportation and logistics industry, today
announced amendments to its existing financing agreement that enhance the size
and flexibility of the TransForce's borrowing capacity.
The enhanced agreement with a group of financial institutions led by
National Bank Financial will result in the Fund's four-year revolving facility
being increased to $515 million from $350 million. The Fund's seven-year term
facility will remain unchanged at $160 million. The amendment also provides
for an additional $125 million in financing subject to certain conditions
being met. The amended agreement will give the Fund a potential total
authorized borrowing capacity of $800 million, compared with $600 million
under the former agreement.
The facilities provide more flexible conditions and will allow TransForce
to repay outstanding indebtedness, to continue to pursue acquisitions, and to
finance general corporate purposes. The security for the facilities continues
to be limited to the Fund's accounts receivable and rolling stock.
"We are very pleased with the additional borrowing capacity and the
increased flexibility of the terms and conditions of the amended financing,"
said Alain Bédard, Chairman, President and Chief Executive Officer of
Transforce Income Fund. "The agreement demonstrates confidence in the Fund's
long-term operations and financial condition and will allow us to continue to
grow and add value for our unitholders."
TransForce Income Fund (www.transforce.ca) is the leader in Canada's
transportation and logistics industry. Headquartered in Montreal, Quebec, the
Fund's objective is to create value for unitholders through managing and
investing in a growing network of independent operating subsidiaries.
TransForce provides a comprehensive and unique combination of capabilities,
resources and geographical coverage in both domestic and trans-border markets.
Its companies operate in four well-defined business segments:
- Less Than Truckload and Parcel Delivery;
- Specialized Services, which includes its ancillary transportation
services and fleet management & personnel services businesses;
- Specialized Truckload; and
TransForce's trust units (TIF.UN) are listed on the Toronto Stock
Exchange and are included in the S&P/TSX Composite Index.
Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of TransForce. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for TransForce's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
For further information:
For further information: Investors: Alain Bédard, Chairman, President
and CEO, TransForce Income Fund, (514) 331 4200; Media: John Lute, Lute &
Company, (416) 929 5883, firstname.lastname@example.org