Celadon Group, Inc. Announces The Sale Of Lease Portfolio Assets And Earnings Release Date

INDIANAPOLIS, April 6, 2014 /PRNewswire/ — Celadon Group, Inc. (NYSE:CGI)
(“Celadon”) announced today that it has agreed to sell its independent
contractor lease portfolio and associated assets to Element Financial
Corporation (TSX:EFN) (“Element”). The existing portfolio includes approximately
600 leases and tractors that are currently in service with independent
contractors with Celadon and other partner carriers. The purchase price of the
transaction is approximately $53 million, which the company expects to use the
funds to pay down its bank line. As part of this transaction, the company has
also entered into a Program Agreement with Element under which Element will
provide financing for the renewal and expansion of the transportation assets
operated by independent lessees under contract to Celadon.

Paul Will, Celadon’s President and Chief Executive Officer, made the following
comment: “This transaction will allow us to reduce the amount of debt on our
balance sheet, while at the same time providing us with the ability to expand
and develop our fleet through a more asset-light model.”

This transaction will be reported in the company’s March quarter results that
will be released after the close of market on Tuesday, April 29 followed by a
conference call on Wednesday, April 30. The details of the conference call will
be published in a later release.

Celadon Group, Inc. (www.celadongroup.com), through its subsidiaries, provides
long-haul and regional full-truckload freight service across the United States,
Canada and Mexico. The company also owns Celadon Logistics Services, which
provides freight brokerage services, less-than-truckload services, as well as
supply chain management solutions, including warehousing and dedicated fleet

Element Financial Corporation is one of North America’s leading equipment
finance companies. Element operates across North America in five verticals of
the equipment finance market – Commercial Finance, Vendor Finance, Aviation
Finance, Railcar Finance and Fleet Management.

This press release contains certain statements that may be considered
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934,
as amended. Such statements may be identified by their use of terms or phrases
such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,”
“intends,” and similar terms and phrases. Forward-looking statements are based
upon the current beliefs and expectations of our management and are inherently
subject to risks and uncertainties, some of which cannot be predicted or
quantified, which could cause future events and actual results to differ
materially from those set forth in, contemplated by, or underlying the
forward-looking statements. Actual results may differ from those set forth in
the forward-looking statements. Readers should review and consider factors that
could impact results as provided in various disclosures by the company in its
press releases, stockholder reports, and filings with the Securities and
Exchange Commission.

SOURCE Celadon Group, Inc.

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