Frozen Food Express Industries, Inc. Enters Into New $50 Million Long-Term Credit Agreement
March 31 2011 - 1:15PM
Frozen Food Express Industries, Inc. (Nasdaq:FFEX)) announced that
it has successfully entered into a new 4-year credit agreement with
Bank of America. The agreement replaces its previous credit
facility, which had been scheduled to mature September 2, 2011, and
increases the borrowing capacity by $30 million to $50
million.
The new $50 million senior secured asset-based revolving credit
facility matures March 29, 2015. The new credit agreement
includes various covenants, limitations and events of default
customary for similar facilities for similarly rated
borrowers. Additional details regarding the new credit
agreement can be found in the FFEX Form 10-K, Exhibit 10.24, filed
with the Securities and Exchange Commission on March 30,
2011. The new credit agreement will be used to repay the
outstanding debt with the Company's previous senior lender, support
working capital requirements and for general corporate
purposes.
Russell Stubbs, the Company's President and Chief Executive
Officer, commented, "We welcome Bank of America as our new U.S.
senior lender. Over the past ten years the Company has
enjoyed excellent working relationships with both Comerica Bank,
who provided the most recent credit facility, and Bank of America,
who in conjunction with Comerica has provided the Company's credit
facility in past years. Bank of America approached us late
last year with a proposal that will allow us to facilitate our
plans to grow with the economy and allow FFE to provide much needed
capacity to the marketplace. The new facility significantly expands
our borrowing capacity and lowers our financing costs. With a
new long-term facility in place, the Company has access to
additional capital and the financial flexibility to execute our
growth strategies."
Mr. Stubbs noted further, "We have always managed our balance
sheet in a conservative fashion and will continue to do
so. However, in today's economy we must be positioned to take
advantage of opportunities as they present themselves and the
additional borrowing capacity allows us that flexibility at a
competitive cost of capital."
About FFE Transportation Services, Inc.
FFE Transportation Services, Inc. is one of the leading
temperature-controlled truckload and less-than-truckload carriers
in the United States with core operations in the transport of
temperature-controlled products and perishable goods including
food, health care and confectionery products. Service is offered in
over-the-road and intermodal modes for temperature-controlled
truckload and less-than-truckload, as well as dry truckload. The
Company also provides brokerage/logistics and dedicated services to
our customers.
Additional information about Frozen Food Express Industries,
Inc. can be found at http://www.ffeinc.com. To join our email alert
list, please click the following link:
http://financials.ffex.net/alerts.cfm. The Company's common stock
is traded on the NASDAQ Global Select market under the symbol
FFEX.
The Frozen Food Express Industries, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3209
CONTACT: Frozen Food Express Industries, Inc.
John McManama, Senior VP and CFO
(214) 630-8090
David Mossberg, Investor Relations
Three Part Advisors, LLC
(817) 310-0051
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