Coach USA, Inc. Announces $125 Million Increase in Credit Facility; Acquires Three Companies With $30 Million in Annualized Revenues.HOUSTON--(BUSINESS WIRE)--Sept. 15, 1998--Coach USA, Inc. (NYSE NYSE See: New York Stock Exchange :CUI (Character-based User Interface) A user interface that uses the character, or text, mode of the computer, such as DOS and Unix. In order to instruct the computer, commands are typed in. Contrast with GUI. ), announced today that it has increased its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility to $425 million from $300 million. The amended credit agreement consists of a $300 million component maturing in August 2001 and a short-term $125 million component containing options that, if exercised by the company, convert it to a two-year term loan. The facility is being provided by a syndicate of banks led by NationsBank, N.A., the company's agent bank since its initial public offering in May 1996. Coach USA also announced that it has acquired three motorcoach and ground transportation companies with total annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of $30 million. These acquisitions include Bonanza Bus Lines of Providence, Rhode Island  “Providence” redirects here. For other uses, see Providence (disambiguation). Providence is the capital and the most populous city of the U.S. ; Erie Coach of London, Ontario; and Clearwater Yellow Cab of Clearwater, Florida. Terms of the transactions were not disclosed. Richard Kristinik, Chairman and Chief Executive Officer, stated, "Our acquisition program is moving along at a brisk pace in 1998, with $250 million in revenues already acquired. The increase in our credit facility ensures that additional resources will be available as acquisition and internal growth opportunities arise." Coach USA is the largest provider of motorcoach tour, charter, commuter and transit services in the United States. Note: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the current plans and expectations of Coach USA, Inc., and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results because of acquisitions and variations in stock prices, changes in government regulations, competition, risks of operations, growth of the newly acquired businesses and risks associated with expanding new advertising opportunities. CONTACT: Coach USA, Inc., Houston Dick Kristinik, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Larry King, Senior Vice President and CFO See Chief Financial Officer. One Riverway, Suite 500 Houston, TX 77056-1921 1(888) COACH-US or Morgen-Walke Associates, Inc., New York Alan Kaiser Investor Relations Media: Eileen King (212) 850-5600 |
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