WINNIPEG, MB, Aug. 20, 2012 /CNW/ - (TSX: NFI) (TSX: NFI.DB.U)
New Flyer Industries Inc. ("NFI") and New Flyer Industries Canada
ULC ("NFI ULC", together with NFI, the "Company" or "New Flyer")
announced today that NFI ULC has completed the redemption of all of
its outstanding 14.0% subordinated notes (the "Subordinated
Notes"), including those held separately and those held in the form
of an income deposit security ("IDS"), in accordance with the terms
of the trust indenture governing the Subordinated Notes. The
Subordinated Notes were redeemed for a total price of C$58.4812 per C$55.30 principal amount of Subordinated Notes,
representing a redemption price of C$58.065 per C$55.30 principal amount of Subordinated Notes
(or 105% of principal), plus all accrued and unpaid interest to and
including the redemption date.
The common shares of NFI (the "Shares") forming
part of an IDS will commence trading separately at the open of
markets today and continue to be listed (together with the current
separately-traded Shares) on the Toronto Stock Exchange (the "TSX")
under the trading symbol "NFI". The IDSs are expected to be
de-listed from the TSX at the close of markets today. As previously
announced, NFI ULC now intends to apply to cease to be a reporting
issuer under the securities laws of each province and territory of
Canada.
Non-registered holders (banks, brokerage firms
or other financial institutions) who held their interests in IDSs
or Subordinated Notes through CDS should contact their CDS customer
services representative with any questions about the redemption.
Beneficial holders, including retail investors, with any questions
about the redemption should contact their brokerage firm or
financial institution which held their interests in the IDSs or
Subordinated Notes on their behalf.
As previously announced, the board of directors
of NFI has approved a new annual dividend rate of C$0.585 per Share, effective for dividends
declared following the redemption of the Subordinated Notes. NFI
today declared a dividend on the Shares in the amount of
C$0.04875 per Share, which will be
payable on September 17, 2012, to
holders of record at the close of business on August 31, 2012. The dividends on the Shares are
designated as "eligible dividends" for purposes of the enhanced
dividend tax credit rules contained in the Income Tax Act
(Canada) and any corresponding
provincial and territorial tax legislation.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses
in Canada and the United States. The Company's three
manufacturing facilities - in Winnipeg,
MB; St. Cloud, MN; and
Crookston, MN - are all ISO 9001,
ISO 14001 and OHSAS 18001 certified. The Company currently
operates a parts fabrication facility in Elkhart, IN and four parts distribution
centers in Winnipeg, MB;
Erlanger, KY; Fresno, CA and Brampton, ON.
With a skilled workforce of over 2,000
employees, New Flyer is a technology leader, offering the broadest
product line in the industry, including drive systems powered by
clean diesel, LNG, CNG and electric trolley as well as
energy-efficient diesel-electric hybrid vehicles. New Flyer has
delivered over 31,000 heavy-duty buses in Canada and the
United States. All products are supported with an
industry-leading, comprehensive parts and service network.
Further information is available on New Flyer's
web site at www.newflyer.com.
The Shares and convertible debentures of NFI are
traded on the TSX under the symbols NFI and NFI.DB.U,
respectively.
Forward-Looking Statements
This press release contains forward-looking statements relating to
expected future events and financial and operating results of New
Flyer that involve risks and uncertainties. The words
"believes", "anticipates", "plans", "expects", "intends",
"projects", "estimates" and similar expressions are intended to
identify forward looking statements. Although the
forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions,
investors cannot be assured that actual results will be consistent
with these forward-looking statements, and the differences may be
material. Actual results may differ materially from
management expectations as projected in such forward-looking
statements for a variety of reasons, including market and general
economic conditions and economic conditions of and funding
availability for customers to purchase buses and to exercise
options for buses and to purchase parts or services, the covenants
contained in NFI ULC's senior credit facility, as amended, could
impact the ability of New Flyer to continue to fund dividends and
take certain other actions, and the other risks and uncertainties
discussed in the materials filed with the Canadian securities
regulatory authorities and available on SEDAR at
www.sedar.com. Due to the potential impact of these factors,
New Flyer 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 NEW FLYER INDUSTRIES CANADA ULC