Vitran Corp., Inc. (VTNC, VTN.TO) announced an agreement to sell about 2.7 million shares of common stock at a price of US$8.50 per share to certain qualified investors. The net proceeds to the company, after payment of costs and expenses associated with the offering, are expected to be about US$21.4 million.
The company plans to use the net proceeds from the offer to permanently reduce the outstanding amount of its syndicated term debt by US$7.5 million. The remainder of the net proceeds will be used to pay down revolving debt.
The repayment of the revolving debt will increase the company's unused debt capacity and give the company added flexibility to execute its operating and capital initiatives.
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