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Montreal, July 28, 2009 – Transcontinental announced
today that it has signed two new financing agreements for
a total of $135 million. One of these is a five-year term
loan of $50 million arranged with the Société
générale de financement du Québec. The
other is with HypoVereinsbank, a major European bank, for
six-year financing of $85 million, which will be used to buy
production equipment over the next two years.
Along with these two new financing agreements, Transcontinental
has obtained an additional $25 million in the one-year credit
facilities recently arranged with its bank syndicate. This
new amount is in addition to the $125 million previously announced
on May 5, 2009. This gives Transcontinental an extra buffer
in the management of its capital expenditures, working capital
and other specific needs.
“We are very pleased that these institutions have
such confidence in us,” said Benoît Huard, Vice
President and Chief Financial Officer of Transcontinental.
“These new credit facilities give Transcontinental greater
flexibility and diversify its sources of financing. They show,
once again, that our disciplined approach to financial management
and development strategy for our Print, Media and Marketing
Communications sectors are recognized by the financial community.”
About Transcontinental
Transcontinental provides printing, publishing and
marketing services that deliver exceptional value to its clients
along with a unique, integrated platform for them to reach
and retain their target audiences. Transcontinental is the
largest printer in Canada and the sixth largest in North America.
It is also Canada’s leading publisher of consumer magazines
and French-language educational resources as well as the country’s
second-largest community newspaper publisher. Transcontinental’s
digital platform delivers unique content through more than
120 websites. Its Marketing Communications Sector provides
advertising services and marketing products using new communications
platforms supported by database analytics, premedia, email
marketing, and custom communications. Transcontinental is
a growing company with a culture of continuous improvement
and financial discipline, whose values, including respect,
innovation and integrity, are central to its operation.
Transcontinental (TSX: TCL.A, TCL.B) employs approximately
13,500 employees in Canada, the United States and Mexico,
and reported revenues of $2.4 billion in 2008. For more information
about the Corporation, please visit www.transcontinental.com.
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For information:
Media
Maxim Labrie
Media Relations
Transcontinental Inc.
Telephone: 514 954-4176
maxim.labrie@transcontinental.ca
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: 514 954 2821
jennifer.mccaughey@transcontinental.ca
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