All monetary amounts in this press release are in US dollars
unless otherwise noted.
- NFI has amended the Company's existing $1.25 billion senior revolving credit facility
(the "Revolver") and its £50 million revolving UK credit facility
(the "UK Facility").
- The amended facilities provide NFI with relaxed covenants as it
recovers from the impacts of the COVID-19 pandemic.
- In addition to amending the facilities, NFI cancelled the
unused $250 million unsecured credit
facility it entered into in April
2020 (the "Sidecar"). The Sidecar was intended to provide
additional liquidity, if required, which the Company believes it no
longer requires.
- Management believes the Company's cash position, anticipated
future revenues and the liquidity from credit facilities are
sufficient to support current operations, dividends and strategic
initiatives.
WINNIPEG, MB, Dec. 23, 2020 /PRNewswire/ - (TSX: NFI) NFI
Group Inc. ("NFI" or the "Company") today announced it has
amended the Revolver and the UK Facility (together, the
"Facilities"), providing meaningful covenant relief and additional
flexibility, and cancelled the $250
million Sidecar.
"NFI is moving forward from the challenging impacts of COVID-19
in a stronger position following the amendments to our credit
facilities, which were made possible by the continued confidence
and support of our banking partners," said Pipasu Soni, NFI's
Executive Vice President, Finance and Chief Financial Officer. "The
need to amend our credit facilities was primarily a calculation
challenge driven by our trailing financial results that reflect the
effect COVID-19 has had on our markets and customers. We anticipate
stronger cash flow generation and liquidity in fiscal years 2021
and 2022 as we execute upon our strategic plan and lead the ongoing
transition to a zero-emission future."
Under the terms of the amended Facilities, the Company's banking
partners have relaxed the total leverage and interest coverage
ratios for 2021 and 2022. During 2021, the Company has received a
waiver on previous total leverage covenants and will instead need
to comply with a total leverage ratio that is based on a
conservative downside financial projection for the Company's 2021
fiscal year. During the waiver period NFI will have to comply with
a $50 million minimum liquidity
covenant and a net debt to capitalization covenant of 70%. Through
the amendments, NFI has provided the lenders security on certain of
its assets, including a general security agreement on NFI's
personal property, but excluding security on real property, until
April 3, 2023.
The terms of the amended Facilities do not restrict the payment
of dividends, provided the Company is in compliance with the
financial covenants and the dividend payments remain at the current
level. Copies of the amendments to the Revolver and the UK
Facility, which will include additional details regarding the
covenants and other terms and conditions, will be posted on SEDAR
in due course.
The Bank of Nova Scotia is the
Administrative Agent for the Revolver and The Bank of Nova Scotia, BMO Capital Markets, and National
Bank Financial Inc. are the Joint Bookrunners. The Revolver
syndicate also includes The Canadian Imperial Bank of Commerce;
Bank of America, Canada Branch;
Wells Fargo Bank, N.A., Canadian Branch; The Toronto Dominion Bank;
HSBC Bank Canada; MUFG Bank Ltd., Canada Branch; Export Development Canada and
ICICI Bank Canada.
For the UK Facility, HSBC UK acted as Administrative Agent and
HSBC UK and the Bank of America, Canada Branch were the two co-lenders and
Mandated Lead Arrangers.
Virtual Investor Day 2021 – Leading the
ZEvolutionTM
NFI will be holding a Virtual Investor Day on January 11th, 2021. During the event,
NFI's Senior Leadership team and Board Directors will provide
updates on the Company's business and market conditions,
strategic and transformational initiatives, NFI's industry leading
zero-emission vehicle program, new products, Environmental, Social
and Governance performance, and financial outlook.
To confirm your attendance for the event please RSVP by
emailing investor@nfigroup.com. You may also
visit nfigroup.com/investor-day-2021/ for more details,
relevant information, and registration instructions.
About NFI Group
Leveraging 450 years of combined experience, NFI is leading the
battery-electric transition of mass mobility around the world. With
zero-emission buses and coaches, infrastructure, and technology,
NFI meets today's urban demands for scalable smart mobility
solutions. Together, NFI is enabling more livable cities through
connected, clean, and sustainable transportation.
NFI is a leading independent global bus manufacturer providing a
comprehensive suite of mass transportation solutions in ten
countries 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 cash flow generation, liquidity, financial
performance and results of operations and the Company's strategic
initiatives, plans, business prospects and opportunities, including
the impact of and recovery from the COVID-19 pandemic. The words
"believes", "views", "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 (including the recovery of the
Company's markets) and the Company's financial 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
events, 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 set forth in forward-looking statements for
a variety of reasons and due to a number of factors. With
respect to the effects of the global COVID-19 pandemic, such
reasons and factors include: the magnitude and length of the
global, national and regional economic and social disruption being
caused as a result of the pandemic; the impact of national,
regional and local governmental laws, regulations and "shelter in
place" or similar orders relating to the pandemic which may
materially adversely impact the Company's ability to continue
operations; partial or complete closures of one, more or all of the
Company's facilities and work locations or the reduction of
production rates (including due to government mandates and to
protect the health and safety of the Company's employees or as a
result of employees being unable to come to work due to COVID-19
infections with respect to them or their family members);
production rates may be further decreased as a result of the
pandemic; supply delays and shortages of parts and components and
disruption to labour supply as a result of the pandemic; the
pandemic will likely adversely affect operations of customers and
reduce and delay, for an unknown period, customers' purchases of
the Company's products; the anticipated recovery of the Company's
markets in the future may be delayed or increase in demand may be
lower than expected as a result of the continuing effects of the
pandemic; the Company's ability to obtain access to additional
capital if required; and 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 pay dividends. There can be no assurance that the
Company will be able to maintain sufficient liquidity for an
extended period, obtain future satisfactory covenant relief under
its credit facilities, if required, or access to additional capital
or access to government financial support or as to when production
operations will return to previous production rates. There is also
no assurance that governments will provide continued or adequate
stimulus funding during or after the pandemic for public transit
agencies to purchase transit vehicles or that public or private
demand for the Company's vehicles will return to pre-pandemic
levels in the anticipated period of time. The Company cautions that
due to the dynamic, fluid and highly unpredictable nature of the
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, financial
condition and ability to generate sufficient cash flow and maintain
adequate liquidity and any material adverse effects could very well
be rapid, unexpected and may continue for an extended and unknown
period of time.
The Company cautions that the foregoing factors are not
exhaustive of all potential risks. These factors and other risks
and uncertainties are discussed in the Company's press releases,
Annual Information Form and materials filed with the Canadian
securities regulatory authorities which are available on SEDAR at
www.sedar.com. 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.
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SOURCE NFI Group Inc.