In February 2013, the Company entered into a new five year amended credit agreement with its bank group to extend the maturity of the credit agreement to February 2018. The Company was in the second year of a five year term prior to the extension. The extended credit agreement increased commitments by $15 million to $155 million, while also maintaining the $100 million "accordion feature" to provide for a larger facility if ever needed. The amended agreement also includes a lower base interest rate and maintains the leverage covenants at existing levels. In connection with the extension of the credit agreement, the Toronto – Dominion Bank joined the bank group, which also includes BMO Harris, the Bank of Nova Scotia, Raymond James and Siemens Financial Services."During the quarter we were successful in extending our senior credit agreement for five years while increasing commitments from our lenders and lowering interest costs under the amended agreement. We currently have approximately $70 million in borrowing availability under the credit agreement," Gallagher said. "We are also reviewing low cost lease proposals recently received from many financial institutions. We have received proposals for over $80 million of six year fixed financing with all-time low rates. Between these two financing alternatives we have more than sufficient funding available for the new contracts secured for fiscal 2014 that have been previously announced, along with additional bid wins we are anticipating and a few small tuck-in acquisitions that may arise. To date we have secured several new bid contracts for next year, including our largest bid win in Omaha Nebraska consisting of 530 vehicles most of which are clean burning propane vehicles (LPG) and a new "managed contract" in Texas where the school district will lease 42 LPG vehicles arranged by us under a recently developed Municipal Tax Lease Program. When combined with the other two contract wins in Pennsylvania, also with LPG, and a new contract in the Peel Region in Ontario Canada we will add over 750 net additional vehicles so far to our operations and will deploy approximately 600 new LPG vehicles to our fleet for growth in fiscal 2014. As we continue to grow using alternative fuels, leasing and managed contracts, we are lowering our cost of operations and creating a cleaner environment in our communities while increasing shareholder value."
Student Transportation Inc. Announces Third Quarter Fiscal Year 2013 Interim Results
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