TransForce Income Fund completes IPO
MONTREAL (Oct. 1, 2002) — TransForce Income Fund, the operator of Cabano Kingsway, TST Overland, Canpar, and other ground transportation businesses, said yesterday it has raised $102 million through an initial public offering.
The income trust offered 12 million units at a price of $8.50 per unit. They will begin trading today on the Toronto Stock Exchange under the trading symbol “TIF.UN”.
The closing of the IPO marks the completion of the conversion of TransForce Inc. into TransForce Income Fund. In connection with the conversion, the common shares of TransForce will be delisted today from the Toronto Stock Exchange.
TransForce said the net proceeds from the IPO will be used to reduce debt linked to recent acquisitions.
As an income trust, TransForce will make monthly distributions of its available cash to the holders of its units. It will continue to operate TransForce’s transportation business, and the former shareholders of TransForce Inc. will continue to own, through the Fund, an economic interest in TransForce’s business.
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