DALLAS (October 25, 2000) -- Greyhound Lines, Inc. announced today that it has closed a financial arrangement with Foothill Capital Corporation, a wholly-owned subsidiary of Wells Fargo & Company [NYSE: WFC-news], for a two-year revolving line of credit of up to $125 million. With the closure of this agreement, Greyhound Lines, an operating company of Laidlaw, Inc., will be independent of its parent company with respect to near-term financing needs.
"We are pleased the Laidlaw bondholders consented to the financing and that our parent can now focus on working towards a consensual resolution of its long-term capital structure and liquidity issues," said Craig Lentzsch, president and CEO of Greyhound Lines. "With this facility in place, our customers can be confident that we will continue to provide the high level of service they've come to expect. The agreement will provide us with the working capital needed to fund our seasonal cash flow needs and capital expenditure requirements, as well as repay a $43 million intercompany advance due to Laidlaw."
Greyhound Lines, Inc. is the largest North American provider of intercity bus transportation, serving more than 3,700 destinations with 20,000 daily departures across the continent. The company also provides package and courier express service, charter and tour services and food service at certain terminals.
In the U.S., for fare and schedule information call 1-800-231-2222 or visit the Web site at www.greyhound.com.
In Canada, for fare and schedule information call 1-800-661-8747 or visit the Web site at www.greyhound.ca.
This news release contains forward-looking statements relating to the company's liquidity requirements and business prospects that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the availability of additional liquidity, if needed, competitive pressures, changes in pricing policies, business conditions in the marketplace, general economic conditions, the result of negotiations with lenders and other debt holders and the risk factors detailed from time-to-time in the company's periodic reports and registration statements filed with the Securities and Exchange Commission.