TRANSCONTINENTAL OPTIMIZES ITS DEBT PORTFOLIO AND GAINS ADDITIONAL FINANCIAL FLEXIBILITY

About this update from Transcontinental Inc. Class A

[{"type":"text","content":"\n\n\n\n Feb. 16, 2011 (Canada NewsWire Group) -- \n\n#ReleaseContent TABLE\n{\n BORDER-COLLAPSE: collapse\n}\nTR.cnwUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px solid\n}\n#ReleaseContent TABLE.cnwBorderedTable TD\n{\n BORDER-RIGHT: black 1px solid;\n PADDING-RIGHT: 2px;\n BORDER-TOP: black 1px solid;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n BORDER-LEFT: black 1px solid;\n PADDING-TOP: 2px;\n BORDER-BOTTOM: black 1px solid;\n BORDER-COLLAPSE: collapse\n}\n#ReleaseContent TABLE TD\n{\n PADDING-RIGHT: 2px;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n PADDING-TOP: 2px\n}\n\n\nMONTREAL, Feb. 16 /CNW Telbec/ - Transcontinental Inc. (TSX: TCL.A,\n TCL.B, TCL.PR.D) announced today that it has agreed to pre-emptively\n repay and cancel its $100 million term credit facility with Caisse de\n dépôt et placement du Québec. This facility had been put in place in\n the spring of 2009, with a five-year term.\n\n\n"The increased cash flow Transcontinental is generating, combined with\n the significant reduction in capital expenditures, resulted in a rapid\n decrease in the usage of our revolving bank credit facilities and\n enabled us to  further optimize our debt portfolio" said Benoît Huard,\n Vice President and Chief Financial Officer of Transcontinental.\n\n\nTranscontinental has also set up a new two-year $200 million\n securitization program with a major Canadian bank. Under this\n securitization agreement, the Corporation sells, on an on-going basis,\n certain of its receivables to a trust. The terms of the new program\n reflect current market conditions and are favorable compared to other\n sources of financing.\n\n\n"While we do not believe we will need to use this program in the near\n term, this new agreement gives us greater financial flexibility while\n diversifying our sources of financing." said Benoît Huard.\n\n\nAbout Transcontinental\n\n\nTranscontinental creates marketing products and services that allow\n businesses to attr...

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