WINNIPEG, Dec. 15, 2015 /CNW/ - (TSX: NFI) (TSX: NFI.DB.U)
New Flyer Industries Inc. ("New Flyer" or the "Company"), the
leading manufacturer of heavy-duty transit buses in the United States and Canada, announced today that the Company will
be added to the S&P/TSX Composite Index (the "Composite
Index"), effective after the close of markets on December 18, 2015. The Company is also
being added to the S&P/TSX Composite Dividend Index at the same
time.
The Composite Index is the headline index in Canada and serves as an indicator of broad
market activity in Canadian equity markets. It includes the
largest and most liquid companies on the Toronto Stock Exchange, as
measured by market capitalization and trading volume.
Inclusion in the Index can potentially broaden participation in a
company's investor base by enabling investment from index funds and
similar investment vehicles.
"Being added to the S&P/TSX Composite Index is a milestone
in New Flyer's journey as a public company and one that recognizes
the substantial efforts and successes of our employees in
continuing to build a great company since the initial public
offering in 2005," said The Honourable Brian Tobin, the chairperson
of the board of directors for New Flyer. "The board and
management believes the inclusion of New Flyer on the Composite
Index should increase the Company's exposure to a broader range of
potential investors and may provide better trading liquidity of the
Company's stock for shareholders."
The Company today also declared a dividend on New Flyer's common
shares (the "Shares") in the amount of C$0.05167 per Share to holders of record at the
close of business on December 31,
2015. The dividend will be payable on January 15, 2016. New Flyer has paid
dividends to shareholders for 122 consecutive months since the
Company's initial public offering in August
2005.
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 the United
States and Canada. The Company is the industry
technology leader and offers the broadest product line including
drive systems powered by: clean diesel, natural gas, electric
trolley, diesel-electric hybrid and now, all-electric buses.
All buses are supported by an industry-leading comprehensive
warranty and support program, and service network. New
Flyer also operates the transit industry's most sophisticated
aftermarket parts organization, sourcing parts from hundreds of
different suppliers and providing support for all types of
heavy-duty transit buses.
The New Flyer group of companies employ over 3,300 team members
with manufacturing, fabrication, parts distribution and service
centers in both Canada and the
United States. Further information is available on New
Flyer's web site at www.newflyer.com.
On November 10, 2015 New Flyer
announced that it has entered into a definitive agreement to
acquire North America's leading
motor coach manufacturer and parts and service supplier Motor Coach
Industries International, Inc. ("MCI"). The completion of the
transaction is subject to customary closing conditions, including
U.S. antitrust and Canadian Competition Act approvals, and is
expected to close by the end of 2015.
The common shares and convertible unsecured subordinated
debentures of the Company are traded on the Toronto Stock Exchange
under the symbols NFI and NFI.DB.U, respectively.
Forward-Looking Statements
This press release may
contain forward-looking statements relating to expected future
events and financial and operating results of the Company that
involve risks and uncertainties. The words "believes",
"anticipates", "plans", "expects", "intends", "projects",
"forecasts", "estimates" and similar expressions are intended to
identify forward looking statements. 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, the TSX's plans and timing
for the addition of the Company to the Composite Index and the
S&P/TSX Composite Dividend Index, the statements as to the
potential broadening of the Company's investor base and better
trading liquidity, the covenants contained in the Company's senior
credit facility could impact the ability of the Company to fund
dividends, risks related to the satisfaction of the relevant
closing conditions for and the completion of the purchase of MCI,
the completion of the new credit facilities being entered into in
connection with the purchase of MCI and the timing thereof, the
availability of funds from the new credit facilities for the
funding of the purchase price for and related expenses related to
the purchase of MCI 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. Due to the potential impact of these 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 New Flyer Industries Inc.