Business
TECSYS Inc. announces the status of its cash holdings and short-term investments
TECSYS Inc. announces the status of its cash holdings and short-term investments.
About this update from Tecsys Inc.
[{"type":"text","content":"\n\n\n\nMONTREAL, Sept. 4 /CNW Telbec/ - TECSYS Inc. (TSX: TCS), an\nindustry-leading supply chain management software company provides the\nfollowing update on the status of its cash holdings and short-term investments\nin light of the current disruption in the credit markets relating to\nasset-backed commercial paper (ABCP). All dollar amounts are expressed in\nCanadian currency. TECSYS had a total available cash position of approximately\n$8.1 million as of August 31, 2007, including $5.1 million invested in six\ndifferent non-bank or third-party ABCP trusts, of which $1.4 million is\nmanaged by Coventree Capital Group Inc. Despite liquidity concerns related to\nthe ABCP products in which TECSYS has invested, TECSYS has a balance of\n$3.0 million which it believes is sufficient cash to meet its financial and\noperational obligations. TECSYS has received an offer of a credit facility of\n$4.8 million from the National Bank of Canada which is currently being\nnegotiated.\n\n\nThe remaining $3.0 million of available cash is either held as cash or\ninvested in highly rated liquid instruments (mainly cash, term deposits and\nbanker's acceptances) and has no exposure whatsoever to the current ABCP\nmarket disruption.\n\n\nAll of TECSYS' ABCP investments are in trusts rated R1-high by Dominion\nBond Rating Service (DBRS) -- DBRS' highest credit rating. The ABCP held by\nTECSYS are securities that met the criteria of TECSYS' investment policy and\nwere purchased on the basis of professional advice from National Bank of\nCanada. Maturity dates range from August 13, 2007, to September 6, 2007. Of\nthe $5.1 million invested in ABCP by TECSYS, $ 3.0 million has matured to date\nand has not been repaid.\n\n\nDBRS has placed several ABCP issuers, "Under review with developing\nimplications," following the announcement in Stockwatch on August 16, 2007, by\na consortium representing banks and major investors that they had agreed in\nprinciple to a long-term proposal and an interim agreement regarding third\nparty asset-backed commercial paper. According to the announcement the effect\nof the agreement in principle would be, among other things, to convert ABCP\ninto term floating-rate notes maturing no earlier than the scheduled\ntermination dates of the underlying assets.\n\n\nAbout TECSYS\n\n\nTECSYS is a leading supply chain mana...