Transit Group Gets $50 Million From GE Capital

ATLANTA — Transit Group said it obtained a $50 million commitment from GE Capital to help refinance its current fleet of tractors and trailers and to support future equipment purchases.

Transit Group will use approximately $20 million to $25 million of the funds available under the new credit line to restructure the financing of existing equipment.

The new financing will enhance the company’s earnings by "substantially" reducing interest and depreciation costs, according to Transit Group President Philip A. Belyew.

he company also announced that its $20 million line of credit with Alabama-based AmSouth Bank was increased to $30 million.

"We appreciate the confidence our lenders continue to express in our business plan and in the opportunities we see for further growth," Mr. Belyew said.

Transit Group has made more than a dozen acquisitions since July 1997 as part of a strategy to consolidate truckload carriers. Fleets in the group operate approximately 1,200 company-owned trucks and 3,000 trailers. Another 500 trucks are leased from owner-operators.