MONTREAL, Oct. 12 /CNW Telbec/ - TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian transportation and logistics industry, today announced amendments to its existing financing agreement that enhance the size and flexibility of the TransForce's borrowing capacity.
The enhanced agreement with a group of financial institutions led by National Bank Financial will result in the Fund's four-year revolving facility being increased to $515 million from $350 million. The Fund's seven-year term facility will remain unchanged at $160 million. The amendment also provides for an additional $125 million in financing subject to certain conditions being met. The amended agreement will give the Fund a potential total authorized borrowing capacity of $800 million, compared with $600 million under the former agreement.
The facilities provide more flexible conditions and will allow TransForce to repay outstanding indebtedness, to continue to pursue acquisitions, and to finance general corporate purposes. The security for the facilities continues to be limited to the Fund's accounts receivable and rolling stock.
"We are very pleased with the additional borrowing capacity and the increased flexibility of the terms and conditions of the amended financing," said Alain Bedard, Chairman, President and Chief Executive Officer of Transforce Income Fund. "The agreement demonstrates confidence in the Fund's long-term operations and financial condition and will allow us to continue to grow and add value for our unitholders."
Profile
TransForce Income Fund (www.transforce.ca) is the leader in Canada's transportation and logistics industry. Headquartered in Montreal, Quebec, the Fund's objective is to create value for unitholders through managing and investing in a growing network of independent operating subsidiaries. TransForce provides a comprehensive and unique combination of capabilities, resources and geographical coverage in both domestic and trans-border markets. Its companies operate in four well-defined business segments:
- Less Than Truckload and Parcel Delivery; - Specialized Services, which includes its ancillary transportation services and fleet management & personnel services businesses; - Specialized Truckload; and - Truckload.
TransForce's trust units (TIF.UN) are listed on the Toronto Stock Exchange and are included in the S&P/TSX Composite Index.
Forward-Looking Statements
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.
%SEDAR: 00018303EF