MONTREAL, Oct. 10, 2014 /CNW Telbec/ - TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, today announced the results of the redemption of its 5.65% convertible unsecured subordinated debentures, the terms of which had been publicized on September 9, 2014. These debentures, with an original aggregate principal amount of $85,000,000, were listed on the Toronto Stock Exchange under the symbol "TFI.DB.A".
Pursuant to the conversion option available to debenture holders, TransForce received conversion requests for a principal amount of $81,606,000 between September 9 and October 8, 2014, resulting in the issuance of 3,692,572 new common shares of TransForce. Prior to the redemption announcement, a principal amount of $422,000 had already been converted, while $227,000 had already been redeemed pursuant to a normal course issuer bid program.
The conversion of the convertible unsecured subordinated debentures will result in a reduction of the financing fees of approximately $4,610,000 on an annual basis, equivalent to $0.03 per share, net of income tax, on a pro forma basis. The issuance of common shares will increase the annual dividend payment by approximately $2,142,000.
TransForce redeemed an unconverted principal amount of $2,745,000 as at October 9, 2014.
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 financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:
- Package and Courier;
- Waste Management;
- Other services, which includes logistics services and rig moving services.
SOURCE: TransForce Inc.
For further information: Investors: Alain Bédard, Chairman, President and CEO, TransForce Inc. (647) 729-4079, [email protected]; Media: Rick Leckner, MaisonBrison Communications, (514) 731-0000, [email protected]