WINNIPEG, Dec. 18, 2015 /CNW/ - (TSX:NFI) (TSX:NFI.DB.U)
Today New Flyer Industries Inc. ("New Flyer" or the "Company")
successfully completed its previously announced acquisition of
Motor Coach Industries International, Inc. ("MCI") for cash
consideration of US$455 million,
subject to certain purchase price adjustments.
Concurrent with the acquisition, the Company amended and
extended its senior secured credit facility to December 18, 2019 while increasing the total
amount of the facilities to US$825
million. The borrowing limits of the revolving facility
have been increased to US$343 million
from US$115 million and the term
facility has been increased to US$482
million from US$142 million.
As previously announced, the New Flyer board of directors
approved a 12.9% increase in the annual dividend rate from
C$0.62 to C$0.70 per common share, and revised its policy
to pay dividends on a quarterly basis. Subject to the dividend
being declared by the board of directors in March 2016, the first quarterly dividend on the
common shares in the amount of C$0.175 per share is expected to be payable on
April 15, 2016, to holders of record
at the close of business on March 31,
2016. The current dividend in the amount of C$0.05167 per common share declared on
December 15, 2015 and payable on
January 15, 2016 will be the last
monthly dividend paid by the Company.
Effective immediately, Paul
Soubry, the Company's President and Chief Executive Officer,
has also been appointed as President and Chief Executive Officer of
MCI and its subsidiaries.
About New Flyer
The Company employs over 4,800 team members and is the largest
transit bus and motor coach manufacturer and parts distributor in
North America with fabrication,
manufacturing, distribution and service centers in Canada and the United States.
Through its Canadian and U.S. subsidiaries, New Flyer
Industries Canada ULC and New Flyer of America Inc., the
Company is North America's
heavy-duty transit bus leader and offers the broadest transit bus
product line (Xcelsior® and MiDi® models),
incorporating the broadest range of drive systems available,
including: clean diesel, natural gas, diesel-electric hybrid,
electric-trolley and now battery-electric. New Flyer actively
supports over 42,000 heavy-duty transit buses (New Flyer, NABI and
Orion) currently in service.
Through its Canadian and U.S. subsidiaries, Motor Coach
Industries Limited and Motor Coach Industries, Inc., the
Company is North America's leader
in motor coaches, offering the MCI J4500, which is the industry's
best-selling intercity coach for 11 consecutive years, and the MCI
D-Series, the industry`s best-selling coach line in North American
motor coach history. MCI is also the exclusive distributor of Setra
S417 and S407 in the United States
and Canada. MCI actively supports over 28,000 motor coaches
currently in service and offers 24-hour roadside assistance 365
days a year.
The Company also operates North
America's most sophisticated aftermarket parts organization
providing support for all types of transit buses and motor
coaches. All buses and coaches are supported by an
industry-leading comprehensive warranty, service and support
network.
Further information is available on the Company's websites at
www.newflyer.com and www.mcicoach.com.
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.
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, dividends are not guaranteed and will be declared in
the discretion of the Company's board of directors based on the
Company's financial position, liquidity and business requirements
and future prospects, the covenants contained in the Company's
senior credit facility could 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. 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.