Transcontinental Arranges Credit, Buys PressesSeptember 2009
MONTREAL—Transcontinental Inc. has ordered four triple-wide versions of the Commander CT newspaper web press from Koenig & Bauer AG (KBA) for plants in Toronto, Calgary and Vancouver. The four presses will have a total of 16 towers, four single and two double folders, and six heatset dryers. Installation of all four presses will start in the first quarter of 2010.
The printer also signed two new financing agreements for a total of C$135 million. One of these is a five-year term loan of C$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 C$85 million, which will be used to buy production equipment over the next two years.
Transcontinental has also obtained an additional C$25 million in the one-year credit facilities recently arranged with its bank syndicate. This new amount is in addition to the C$125 million previously announced. This gives the company an extra buffer in the management of its capital expenditures, working capital and other specific needs.