WINNIPEG, Oct. 25, 2018 /CNW/ - (TSX: NFI) NFI Group Inc.
("NFI") the largest bus and motor coach manufacturer and parts
distributor in North America,
today announced that it and certain of its subsidiaries
(collectively, the "Company") has entered into a revolving credit
facility (the "Credit Facility") with a total borrowing limit of
$1.0 billion, which includes a
$100 million letter of credit
facility. The Credit Facility is unsecured, has a 5-year term
and will mature on October 25, 2023.
In addition, the Credit Facility provides an accordion
feature which allows the Company to obtain additional funding of up
to $250 million, subject to customary
conditions. The Credit Facility refinances and replaces the
Company's existing secured credit facility, which had a total
borrowing limit of $825 million.
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Loans under the Credit Facility bear interest at a rate equal to
LIBOR or a U.S. base rate for loans denominated in U.S. dollars and
a Canadian prime rate or bankers' acceptance rate for loans
denominated in Canadian dollars, plus an applicable margin to those
rates.
There are certain financial covenants under the Credit Facility
that must be maintained. Specifically, the Company must maintain an
interest coverage ratio greater than 3.0 to 1 and a total
leverage ratio ("TLR") of less than 3.75 to 1. NFI
desires to maintain a TLR of around 2.0 to 2.5. Within NFI's
desired range of TLR, the cost of borrowing is expected to decrease
approximately 30 basis points compared to the previous secured
credit facility.
The Bank of Nova Scotia is the
Administrative Agent under the Credit Facility and Bank of
Nova Scotia, BMO Capital Markets
and National Bank Financial Inc. are the Co-Lead Arrangers. The
Credit Facility has been syndicated, with the lenders comprised of
the three lead banks and eight other financial institutions, all of
whom were parties to the previous credit facility.
"We are very pleased with our new credit facility and the strong
and continued support received from our banking partners," said
Paul Soubry, NFI's President and
Chief Executive Officer. "The credit facility's size,
unsecured structure, and improved covenants provides us with
flexibility to pursue numerous strategic initiatives to grow and
diversify our business. It's an exciting step that
will support NFI's future growth."
All references to "$" in this press release are to U.S.
dollars.
About NFI Group Inc.
With nearly 6,000 team members, operating from 31 facilities
across Canada and the United States, NFI is North America's largest bus manufacturer
providing a comprehensive suite of mass transportation solutions
under several brands: New Flyer® (heavy-duty transit
buses), ARBOC® (low-floor cutaway and medium-duty
buses), MCI® (motor coaches), and NFI Parts™ (parts,
support, and service). NFI buses 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). For the fiscal year ended December 31, 2017, NFI posted revenues of US
$2.4 billion. NFI common shares are
traded on the Toronto Stock Exchange under the symbol NFI. News and
information are available at www.nfigroup.com.
Forward-Looking Statements
This press release may contain forward-looking statements
relating to expected future events and financial and operating
results of NFI that involve risks and uncertainties. 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 the other risks and uncertainties discussed in the
materials filed with the Canadian securities regulatory authorities
and available on SEDAR at www.sedar.com. NFI 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.