Recently, the company announced it had secured a new extension to its senior credit facility with lower rates and a longer term. "Our credit facility amendment and extension allows us to take advantage of low rate financing in the event rates begin to rise," said Gallagher. "We increased the size of the facility, negotiated lower rates, brought in a new lender and received a new long term agreement. Our debt levels even after this growth are consistent with the asset valuation base we have and is well within our lender covenants. The current low interest rate environment and hugely successful low cost leasing program we put together with our lenders allows us to grow at these levels using only our own cash and credit and that is a good thing for shareholders."
About Student Transportation
Founded in 1997, Student Transportation Inc. (TSX:STB) (Nasdaq:STB) is North America's third-largest and most progressive provider of school bus transportation services, operating more than 9,500 vehicles. Student Transportation's family of local companies delivers safe, reliable and cost-effective transportation solutions to school districts throughout the U.S. and Canada. Services are delivered by drivers, dispatchers, maintenance technicians, terminal managers and others who are caring members of their local communities. For more information, please visit www.rideSTBus.com .
Forward-Looking StatementsCertain statements in this news release are "forward-looking statements" within the meaning of applicable securities laws, which reflect the expectations of management regarding, among other matters, STI's revenues, expense levels, cost of capital, financial leverage, seasonality, liquidity, profitability of new businesses acquired or secured through bids, borrowing availability, ability to renew or refinance various loan facilities as they become due, ability to execute STI's growth strategy and cash distributions, as well as their future growth, results of operations, performance and business prospects and opportunities. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions, and the negative forms thereof, suggesting future outcomes or events.
CONTACT: INVESTOR CONTACTS: Student Transportation Inc. Patrick J. Walker Executive Vice President and Chief Financial Officer Keith P. Engelbert Director of Investor Relations (843) 884-2720 Email: invest@rideSTA.com Website: www.rideSTBus.com