Celadon reduces revolver borrowings with proceeds from divesture

By Sarah Lizee

Olympia, Wash., April 15 – Celadon Group, Inc. reduced borrowings under its revolving credit agreement with proceeds from the divesture of its logistics business division, according to a press release.

The purchaser was TA Services, Inc., a PS Logistics, LLC subsidiary.

Proceeds from the divesture was also used for transaction costs and additional liquidity.

“From a leverage perspective, this transaction and our recent sale of our A&S Kinard and Buckler subsidiaries have reduced our outstanding borrowings and capital leases by approximately $185 million,” said Paul Svindland, the company’s chief executive officer, in the release.

“We continue to work with existing and new financing sources toward both an extension of our current facility and a longer-term capital structure that will support our ongoing operational and financial improvement efforts.”

The Indianapolis-based company provides long-haul, full-truckload freight service across the United States, Canada and Mexico.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.