DALLAS, March 31, 2011 (GLOBE NEWSWIRE) -- 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.
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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