MONTREAL, Feb. 16 /CNW Telbec/ - Transcontinental Inc. (TSX: TCL.A,
TCL.B, TCL.PR.D) announced today that it has agreed to pre-emptively
repay and cancel its $100 million term credit facility with Caisse de
dépôt et placement du Québec. This facility had been put in place in
the spring of 2009, with a five-year term.
"The increased cash flow Transcontinental is generating, combined with
the significant reduction in capital expenditures, resulted in a rapid
decrease in the usage of our revolving bank credit facilities and
enabled us to further optimize our debt portfolio" said Benoît Huard,
Vice President and Chief Financial Officer of Transcontinental.
Transcontinental has also set up a new two-year $200 million
securitization program with a major Canadian bank. Under this
securitization agreement, the Corporation sells, on an on-going basis,
certain of its receivables to a trust. The terms of the new program
reflect current market conditions and are favorable compared to other
sources of financing.
"While we do not believe we will need to use this program in the near
term, this new agreement gives us greater financial flexibility while
diversifying our sources of financing." said Benoît Huard.
Transcontinental creates marketing products and services that allow
businesses to attract, reach and retain their target customers. The
Corporation is the largest printer in Canada and Mexico, and
fourth-largest in North America. As the leading publisher of consumer
magazines and French-language educational resources, and of community
newspapers in Quebec and the Atlantic provinces, it is also one of
Canada's top media groups. In addition, its digital platforms deliver
unique content through more than 250 websites. Transcontinental also
offers interactive marketing products and services that use new
communications platforms supported by marketing strategy and planning
services, database analytics, premedia, e-flyers, email marketing,
custom communications and mobile solutions.
Transcontinental (TSX: TCL.A, TCL.B, TCL.PR.D) has 10,500 employees in
Canada, the United States and Mexico, and reported revenues of C$2.1
billion in 2010. For more information about the Corporation, please
SOURCE TRANSCONTINENTAL INC.
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