Transcontinental Inc. puts in place a new $400 million credit facility
Montreal, February 20, 2012 – Transcontinental Inc. (TSX: TCL.A, TCL.B, TCL.PR.D) today announced that it has put in place a new $400 million five-year Unsecured Revolving Credit Facility that expires in February 2017. This Facility can be extended on an annual basis for one-year periods, subject to lenders' approval. The Facility was arranged by a group of eight financial institutions led by the Canadian Imperial Bank of Commerce and Scotiabank.
The current credit facility will remain in place until its expiry in September 2012 but has been reduced to $200 million. As at October 31, 2011, Transcontinental had drawn $181.7 million on this facility.
"We are very pleased that our financial partners continue to demonstrate their confidence in our company, strategy and prospects. This agreement provides us with the flexibility we need to pursue our strategic plan and also recognizes our disciplined approach to financial management, including our strong balance sheet with a net debt to EBITDA ratio of 1.4x, our cash flow generating ability and our investment grade credit rating," said Nelson Gentiletti, Chief Financial and Development Officer.
TC Transcontinental creates marketing products and services that allow businesses to attract, reach and retain their target customers. The Corporation is the largest printer in Canada and the fourth-largest in North America. As the leading publisher of consumer magazines and French-language educational resources, and of community newspapers in Quebec and the Atlantic provinces, it is also one of Canada's top media groups. TC Transcontinental is also the leading door-to-door distributor of advertising material in Canada through its celebrated Publisac network in Quebec and Targeo in the rest of Canada. Thanks to a wide digital network of more than 1,000 websites, the Corporation reaches over 13 million unique visitors per month in Canada. TC Transcontinental also offers interactive marketing products and services that use new communication platforms supported by marketing strategy and planning services, database analytics, premedia, e-flyers, email marketing, custom communications and mobile solutions.
Transcontinental Inc. (TSX: TCL.A, TCL.B, TCL.PR.D), known by the brands TC Transcontinental, TC Media and TC Transcontinental Printing, has approximately 10,000 employees in Canada and the United States, and reported revenues of C$2.0 billion in 2011. For more information about the corporation, please visit www.tc.tc
This press release contains certain forward-looking statements concerning the future performance of the Corporation. Such statements, based on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, many of which are beyond the Corporation's control, including, but not limited to, the economic situation, structural changes in its industries, exchange rate, availability of capital, energy costs, increased competition, as well as the Corporation's capacity to engage in strategic transactions and integrate acquisitions into its activities. The risks, uncertainties and other factors that could influence actual results are described in the Management's Discussion and Analysis and Annual Information Form.
The forward-looking information in this release is based on current expectations and information available as at February 20, 2012. The Corporation's management disclaims any intention or obligation to update or revise any forward-looking statements unless otherwise required by the Securities Authorities.
- 30 -
For information or interview requests:
Director, Internal and External Communications
Telephone : 514 954-2809
Jennifer F. McCaughey
Senior Director, Investor Relations and Financial Communications
Telephone : 514 954-2821