Quality Distribution, Inc. Announces Intention to Redeem $22.5 Million of Second-Priority Senior Notes

Quality Distribution, Inc. Announces Intention to Redeem $22.5 Million of
Second-Priority Senior Notes

TAMPA, Fla., June 16, 2014 (GLOBE NEWSWIRE) -- Quality Distribution, Inc.
(Nasdaq:QLTY) announced today that its wholly owned subsidiaries, Quality
Distribution, LLC ("QD LLC") and QD Capital Corporation ("QD Capital" and,
together with QD LLC, the "Issuers"), have issued notice that they will redeem
$22.5 million in aggregate principal amount of their 9.875% Second-Priority
Senior Notes due 2018 (the "2018 Notes") on July 16, 2014 (the "Redemption
Date"). The redemption price for the 2018 Notes will be equal to 100% of the
aggregate redemption amount of $22.5 million (plus accrued but unpaid interest
up to the Redemption Date) plus a 3.0% premium.Borrowings under QD LLC's
existing revolving ABL credit facility and/or cash on hand will be used to
fund the redemption.

"This redemption is another successful step towards achieving our previously
discussed goal of reducing our higher cost debt, while maintaining strong
liquidity," commented Joe Troy, Executive Vice President and Chief Financial
Officer. "Today's announcement reinforces our commitment to reducing leverage
with our free cash flow and enhancing shareholder value."

About Quality

Headquartered in Tampa, Florida, Quality operates the largest chemical bulk
logistics network in North America through its wholly-owned subsidiary,
Quality Carriers, Inc., and is the largest North American provider of
intermodal tank container and depot services through its wholly-owned
subsidiary, Boasso America Corporation. Quality also provides logistics and
transportation services to the unconventional oil and gas industry including
crude oil, fresh water and production fluids, through its wholly-owned
subsidiaries, QC Energy Resources, Inc. and QC Environmental Services,
Inc.Quality's network of independent affiliates and independent
owner-operators provides nationwide bulk transportation and related services.
Quality is an American Chemistry Council Responsible Care® Partner and is a
core carrier for many of the Fortune 500 companies that are engaged in
chemical production and processing.

This press release contains certain forward-looking information that is
subject to the safe harbor provisions created by the Private Securities
Litigation Reform Act of 1995.Forward-looking information is any statement
other than a statement of historical fact and includes our 2014
Outlook.Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
expected or projected in the forward-looking statements. Without limitation,
risks and uncertainties regarding forward-looking statements include (1) the
effect of local, national and international economic, credit, capital and
labor market conditions on the economy in general, on our ability to obtain
desired debt financing and on the particular industries in which we operate,
including excess capacity in the industry,changes in fuel and insurance
prices, interest rate fluctuations, and downturns in customers' business
cycles and shipping requirements; (2) our substantial leverage and our ability
to make required payments and comply with restrictions contained in our debt
arrangements or to otherwise generate sufficient cash flow from operations or
borrowing under our ABL Facility to fund our liquidity needs; (3) competition
and rate fluctuations, including fluctuations in prices and demand for
transportation services as well as for commodities such as natural gas and
oil; (4) our reliance on independent affiliates and independent
owner-operators; (5) our liability related to third party equipment leasing
programs; (6) a shift away from or slowdown in production in the shale regions
in which we have energy logistics operations; (7) our liability as a
self-insurer to the extent of our deductibles as well as changing conditions
and pricing in the insurance marketplace; (8) increased unionization, which
could increase our operating costs or constrain operating flexibility; (9)
changes in, or our inability to comply with, governmental regulations and
legislative changes affecting the transportation industry generally or in the
particular segments in which we operate;(10) federal and state legislative and
regulatory initiatives, which could result in increased costs and additional
operating restrictions upon us or our oil and gas frac shale energy customers;
(11) our ability to access anduse disposal wells and other disposal sites and
methods in our energy logistics business; (12) our ability to comply with
current and future environmental regulations and the increasing costs relating
to environmental compliance; (13) potential disruptions at U.S. ports of
entry; (14) diesel fuel prices and our ability to recover costs through fuel
surcharges; (15) our ability to attract and retain qualified drivers;(16)
terrorist attacks and the cost of complying with existing and future
anti-terrorism security measures; (17) our dependence on senior management;
(18) the potential loss of our ability to use net operating losses to offset
future income; (19) potential future impairment charges; (20) our ability to
successfully identify acquisition opportunities, consummate such acquisitions
and successfully integrate acquired businesses and converted independent
affiliates and achieve the anticipated benefits and synergies of acquisitions
and conversions, the effects of the acquisitions and conversions on the
acquired businesses' existing relationships with customers, governmental
entities, independent affiliates, independent owner-operators and employees,
and the impact that acquisitions and conversions could have on our future
financial results and business performance and other future conditions in the
market and industry from the acquired businesses; (21) our ability to execute
plans to profitably operate in the transportation business and disposal well
business within the energy logistics market; (22) our success in entering new
markets; (23) adverse weather conditions; (24) disruptions of our information
technology and communications systems; (25) our liability for our
proportionate share of unfunded vested benefit liabilities, particularly in
the event of our withdrawal from any of our multi-employer pension plans; (26)
the assumptions underlying our expectations of financial results in 2014; and
(27) changes in planned or actual capital expenditures due to operating needs,
changes in regulation, covenants in our debt arrangements and other expenses,
including interest expense. Readers are urged to carefully review and consider
the various disclosures regarding these and other risks and uncertainties,
including but not limited to risk factors contained in Quality Distribution,
Inc.'s Annual Report on Form 10-K for the year ended December 31, 2013 and its
Quarterly Reports on Form 10-Q, as well as other reports filed with the
Securities and Exchange Commission. Quality disclaims any obligation to update
any forward-looking statement, whether as a result of developments occurring
after the date of this release or for any other reasons.

CONTACT: Joseph J. Troy
         Executive Vice President and Chief Financial Officer
         800-282-2031 ext. 7195

Quality Distribution, Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.