TransForce board gives go-ahead for 5.65% convertibles issuer bid

By Jennifer Chiou

New York, Dec. 27 - TransForce Inc. announced that its board of directors has authorized the purchase of up to $8,477,300 principal amount of the company's 5.65% convertible debentures due Sept. 30, 2018 under a normal course issuer bid.

In addition, TransForce entered into an automatic purchase agreement with National Bank Financial Inc. in connection with the bid. Under the agreement, National Bank may acquire convertibles at any time on TransForce's behalf.

The company plans to cancel any acquired securities.

The maximum repurchase amount represents 10% of the public float of $84,773,000 principal amount.

The bid is conditioned on the acceptance of the Toronto Stock Exchange and will start on Dec. 31, 2013 and end on Dec. 30, 2014.

A maximum of $37,640 principal amount of the convertibles will be purchased daily.

TransForce said it has not purchased any 5.65% convertible debentures under its prior normal course issuer bid.

"Given the free cash flow generated by our operations, the board of directors of TransForce believes that the proposed normal course issuer bids represent an appropriate use of the company's financial resources," Alain Bedard, TransForce's chairman of the board, president and chief executive officer, said in a news release.

TransForce is a Montreal-based transportation and logistics company.

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