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Vitran Completes Refinancing of Senior Credit Facilities
TORONTO, Dec 1, 2011 (GlobeNewswire via COMTEX) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation and supply chain firm, today announced that it has signed and closed the two previously-announced credit agreements, replacing the current credit agreement which was due to expire in 2012. Vitran signed a new, three-year bank agreement with a four-bank syndicate led by JPMorgan Chase Bank, for an asset-based revolving credit facility to provide up to $85 million. Vitran also signed a new $45.7 million seven-year real estate term credit facility secured by Vitran's four Canadian LTL transportation facilities.
Under the agreements, Vitran:
-- Increased liquidity and improved the terms and conditions with a new
debt structure that provides Vitran additional flexibility to invest in
its business
-- Reduced interest rate spreads under the new revolving credit facility
for LIBOR and Canadian BA-rated loans by a minimum of 125 basis points
-- Extracted substantial value from its Canadian real estate in the form of
a seven-year term facility at a fixed rate of 475 basis points
-- Created additional borrowing capacity under the new revolving credit
facility as Vitran's business continues to grow.
Vitran President and Chief Executive Officer Rick Gaetz stated, "We look forward to our continued partnership with JPMorgan and our new real estate lender. We are extremely pleased to have positioned Vitran with the flexibility to continue to execute our operating plan. In addition we reduced our blended all-in interest rate to approximately 3.75% at current interest rates."
New SCO Distribution Facility
Vitran also announced today its Supply Chain Operation will be opening a new Dedicated Distribution Center in Tacoma, Washington effective April, 2012. "We are excited with our continued expansion on the West coast of the United States. Our management team continues its positive momentum from 2011 as we build the Vitran Supply Chain brand," concluded Mr. Gaetz.