TransForce enlists National Bank for purchase plan under issuer bid

By Susanna Moon

Chicago, July 27 - TransForce Inc. said it entered into an automatic purchase plan with National Bank Financial Inc. to facilitate the repurchase of its 6% convertible debentures due Nov. 30, 2015 and 5.65% convertible debentures due Sept. 30, 2018 under the normal course issuer bid that began on May 31.

Under the plan, National Bank may repurchase the convertible on TransForce's behalf under the normal course issuer bid during the company's self-imposed blackout periods, according to a press release by TransForce.

The plan will be implemented as of Aug. 2.

Issuer bid

The company said on May 29 that its board of directors authorized purchasing up to C$14,319,000 principal amount of the 6% convertibles and up to C$8,489,000 principal amount of 5.65% convertibles.

The maximum repurchase amount for each series represents 10% of the public float, of C$143.19 million principal amount of the 6% convertibles and of C$84.89 million principal amount of 5.65% convertible as May 23, according to a previous press release.

The two issuer bids will be in place for 12 months until May 30, 2013.

The average daily trading volume was C$123,000 for the 6% convertibles and C$64,000 for the 5.65% convertibles. Accordingly, under the rules of the Toronto Stock Exchange, TransForce may purchase up to 25% of that amount, or C$30,000 of the 6% notes and up to C$16,000 of the 5.65% notes, on any one trading day. In addition, TransForce may make once per calendar week a block purchase of 6% notes or 5.65% notes not directly or indirectly owned by insiders of TransForce.

"Given the free cash flow generated by our operations, the board of directors of TransForce believes that the proposed normal course issuer bids represent an appropriate use of the company's financial resources," Alain Bedard, TransForce's chairman of the board, president and chief executive officer, said in the previous release.

TransForce is a Montreal-based transportation and logistics company.

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