MONTREAL, June 27, 2013 /CNW Telbec/ - TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, today announced it has signed an agreement with its banking syndicate to amend and extend its existing credit facility. The agreement provides greater capital management flexibility for TransForce.
Under the terms of the agreement, the $800 million credit facility has been extended by one year to August 2016 and can be further extended annually. The new agreement also provides more advantageous terms and covenants for TransForce with regards to maintaining certain financial ratios as well as proceeding with additional external borrowings should TransForce remain compliant with covenants. The applicable interest rate is unchanged.
TransForce intends to use the credit facility for corporate purposes consistent with its established operating strategy.
TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned, operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:
- Package and Courier;
- Truckload, which includes specialized truckload and dedicated services;
- Specialized Services, which includes services to the energy sector, waste management, logistics and ancillary transportation services.
TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX). For more information, visit http://www.transforcecompany.com.
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 results.
SOURCE: TRANSFORCE INC.
For further information:
Chairman, President and CEO