WINNIPEG, May 4, 2020 /CNW/ - (TSX: NFI) NFI Group
Inc. ("NFI" or the "Company") today announced that it and
its subsidiary, NFI International Limited, have entered into a new
£50 million unsecured, revolving credit facility (the "UK
Facility") to support Alexander Dennis Limited's ("ADL")
United Kingdom ("UK") operations.
ADL is a subsidiary of NFI International Limited.
The UK Facility is primarily a strategic borrowing initiative
that management expects could lower interest expenses and
withholding tax exposure as it allows the Company to better manage
international transactions and borrowings. The UK Facility can be
used for ADL's general corporate purposes and in addition to
potential cost savings, also provides further liquidity for
NFI.
The terms and covenants of the UK Facility are similar to the
Company's existing credit facilities, with some specific
modifications for local UK laws and regulations. The facility has a
two year term with options to extend.
HSBC UK is the Administrative Agent for the UK Facility and HSBC
UK and the Bank of America, Canada
Branch were the two co-lenders and Mandated Lead Arrangers.
"This new facility is another strategic initiative that will
help NFI better manage international currency, tax and transaction
risks," said Pipasu Soni, Executive Vice President, and Chief
Financial Officer, NFI Group. "The UK Facility, in combination with
our previously announced credit covenant relief and new
$250 million, unsecured credit
facility, provides NFI with stronger credit flexibility and
liquidity. Our banking partners continue to be strong supporters of
NFI and this new UK Facility shows their continued confidence in
our business."
About NFI Group
With more than 9,000 team members operating from 50 facilities
across ten countries, NFI is a leading independent global bus
manufacturer providing a comprehensive suite of mass transportation
solutions under brands: New Flyer® (heavy-duty transit
buses), Alexander Dennis Limited (single and double-deck buses),
Plaxton (motor coaches), MCI® (motor coaches),
ARBOC® (low-floor cutaway and medium-duty buses), and
NFI Parts™. NFI vehicles incorporate the widest range of
drive systems available including: clean diesel, natural gas,
diesel-electric hybrid, and zero-emission electric (trolley,
battery, and fuel cell). In total, NFI now supports over
105,000 buses and coaches currently in service around the
world.
NFI common shares are traded on the Toronto Stock Exchange under
the symbol NFI. Further information is available at
www.nfigroup.com, www.newflyer.com, www.mcicoach.com,
www.arbocsv.com, www.nfi.parts, www.alexander-dennis.com,
and www.carfaircomposites.com.
Forward-Looking Statements
Certain statements in this press release are "forward looking
statements", which reflect the expectations of management regarding
the Company's future growth, liquidity, results of operations,
performance and business prospects and opportunities. The
words "believes", "anticipates", "plans", "expects", "intends",
"projects", "forecasts", "estimates", "may", "will" and similar
expressions are intended to identify forward looking statements.
These forward-looking statements reflect management's current
expectations regarding future events and operating performance and
speak only as of the date of this press release. Forward-looking
statements involve significant risks and uncertainties, should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether or not or the
times at or by which such performance or results will be
achieved.
Actual results may differ materially and adversely from
management expectations as projected in such forward-looking
statements for a variety of reasons, including, but not limited to,
the magnitude and length of the global, national and regional
economic and social disruption being caused as a result of the
global COVID-19 pandemic; the impact of national, regional and
local governmental laws, regulations and "shelter in place" or
similar orders relating to the COVID-19 pandemic which materially
adversely impact the Company's ability to continue operations;
additional partial or complete closures of one, more or all of the
Company's facilities and work locations (including to protect the
health and safety of the Company's employees) or the extension of
such closures as a result of the COVID-19 pandemic; continuing and
worsening supply delays and shortages of parts and components and
disruption to labour supply as a result of the COVID-19 pandemic;
the COVID-19 pandemic will likely adversely affect operations of
customers as a result of shutdowns and/or disruptions to their
operations and the services provided to their customers and end
users; the Company's ability to obtain access to additional capital
if required; the Company's financial performance and condition,
obligations, cash flow and liquidity and its ability to maintain
compliance with the covenants under its credit facilities, which
may also negatively impact the ability of the Company to fund
dividends; and the other risks and uncertainties detailed in the
disclosure documents filed with the Canadian securities regulatory
authorities and available on SEDAR at www.sedar.com. These above
risks relating to the impact of the COVID-19 pandemic may
materially adversely impact the Company's business, operating
performance and financial condition, including as a result of
reduction to the Company's cashflow, liquidity and its ability to
maintain compliance with covenants under its credit
facilities. There can be no assurance that the Company will
be able to maintain sufficient liquidity for an extended period,
obtain future covenant relief under its credit facilities or access
to additional capital or access to government financial support or
as to when production operations will commence.
The Company cautions that due to the dynamic, fluid and highly
unpredictable nature of the COVID-19 pandemic and its impact on
global and local economies, businesses and individuals, it is
impossible to predict the severity of the impact on the Company's
business, operating performance and financial condition and any
material adverse effects could very well be rapid, unexpected and
may continue for an extended and unknown period of time. The
extent of such impact will depend on future developments, which are
unpredictable, including new information which may emerge
concerning the spread and severity of COVID-19 and actions taken by
governments and health organizations around the world to address
its impact, among others.
Due to the potential impact of these and other factors, the
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by
applicable law.
SOURCE NFI Group Inc.