Vitran gets new C$85 million revolver, C$45.7 million term facility

By Jennifer Chiou

New York, Dec. 1 - Vitran Corp. Inc. said it has replaced its credit agreement that was to expire next year by entering into a new up to C$85 million three-year bank asset-based revolving credit facility and a new C$45.7 million seven-year real estate term credit facility.

The revolver involved a four-bank syndicate led by JPMorgan Chase Bank, according to a news release.

The term credit facility is secured by Vitran's four Canadian LTL transportation facilities.

Under the agreements, Vitran said that it increased liquidity and improved flexibility.

In addition, the company reduced interest-rate spreads under the new revolver by a minimum of 125 basis points.

Vitran added that it extracted "substantial value" from its Canadian real estate in the form of the term facility at a fixed rate of 475 bps.

"We look forward to our continued partnership with JPMorgan and our new real estate lender," president and chief executive officer Rick Gaetz said in the release.

"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."

Vitran is a Toronto-based provider of freight surface transportation and related logistics services.

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