EX-99.1 2 ex991.htm NEWS RELEASE DATED DECEMBER 31, 2008 ex991.htm
Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350

	    Attention Business Editors:
	    Vitran Corporation modifies current debt arrangement

	    TORONTO, Dec. 31 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX:
VTN), a North American transportation and logistics firm, today announced that
it has signed an amendment to its bank syndication agreement, led by JPMorgan
Chase Bank.
	    Under the amendment the syndicate and Vitran agreed to a number of
changes to its banking agreement the most significant being:

	    <<
	    -   An expanded leverage ratio covenant for the period ended December 31,
	        2008 through to December 31, 2009

	    -   Interest rate spreads for LIBOR and Canadian BA-rated loans ranging
	        from 250 basis points to 450 basis points

	    -   Reaffirmation of maturity to July 31, 2012
	    >>

	    Vitran President and Chief Executive Officer Rick Gaetz stated, "The
expansion of Vitran's leverage ratio for the current year end and the balance
of 2009 provide the Company with the needed room to weather the current
economic storm. We anticipate that the Company will conclude 2008 with balance
sheet debt of approximately $116.0 million, a reduction of $12.0 million for
the year and repay approximately an additional $15.0 million of balance sheet
debt in 2009. After a one-time write-off of $0.9 million in previously
capitalized syndication fees we expect the 2009 interest expense to be between
$10 million and $11.0 million. Additionally, we appreciated the unwavering
support of JP Morgan and our syndicate."

	    About Vitran Corporation Inc.

	    Vitran Corporation Inc. is a North American group of transportation
companies offering less-than-truckload, logistics, truckload, and freight
brokerage services. To find out more about Vitran Corporation Inc. (NASDAQ:
VTNC, TSX: VTN), visit the website at www.vitran.com.

	    This press release contains forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. Forward-looking statements may be
generally identifiable by use of the words "believe", "anticipate", "intend",
"estimate", "expect", "project", "may", "plans", "continue", "will", "focus
should" "endeavor" or the negative of these words or other variations on these
words or comparable terminology. These forward-looking statements are based on
current expectations and are naturally subject to uncertainty and changes in
circumstances that may cause actual results to differ materially from those
expressed or implied by such forward-looking statements.
	    Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Vitran's actual results,
performance or achievements to differ materially from those projected in the
forward-looking statements. Factors that may cause such differences include,
but are not limited to, technological change, increases in fuel costs,
regulatory changes, the general health of the economy, seasonal fluctuations,
unanticipated changes in railroad capacities, exposure to credit risks,
changes in labour relations and competitive factors. More detailed information
about these and other factors is included in the annual MD&A on Form 10K under
the heading "General Risks and Uncertainties." Many of these factors are
beyond the Company's control; therefore, future events may vary substantially
from what the Company currently foresees. You should not place undue reliance
on such forward-looking statements. Vitran Corporation Inc. does not assume
the obligation to revise or update these forward-looking statements after the
date of this document or to revise them to reflect the occurrence of future
unanticipated events, except as may be required under applicable securities
laws.

	    %SEDAR: 00004231E          %CIK: 0000946823

	    /For further information: Richard Gaetz, President, CEO, Sean Washchuk,
VP Finance, CFO, Vitran Corporation Inc., (416) 596-7664/
	    (VTNC VTN.)

CO:  Vitran Corporation Inc.

CNW 06:00e 31-DEC-08