WINNIPEG, Jan. 17, 2019 /CNW/ - (TSX:NFI) NFI Group Inc.
("NFI") today announced that the Toronto Stock Exchange ("TSX") has
accepted a notice filed by NFI of its intention to amend its
existing normal course issuer bid ("NCIB") for its common shares
(the "Shares"). The maximum number of Shares which may be purchased
under the NCIB will increase from 2,774,733 Shares, being 5% of the
public float, to 5,549,465 Shares, which equals 10% of the public
float, in each case as of the date of commencement of the NCIB. No
other terms of the NCIB have been amended. NFI believes that the
Shares are currently trading in a price range that does not fully
reflect their value and that the acquisition of Shares may
represent an attractive and desirable use of its funds.
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NFI has been actively purchasing Shares under the existing NCIB
since it was commenced. As of the close of business on January 16, 2019, 2,153,275 Shares (approximately
$89,131,159 CAD)) have been
purchased. Pursuant to the amended NCIB, NFI can purchase up to
3,396,191 Shares (taking into account the prior purchases).
Purchases will terminate on June 13,
2019, or earlier should NFI complete its purchases prior to
such date. All purchases will be made through the facilities of the
TSX and any alternative Canadian trading systems and all
Shares acquired under the NCIB will be cancelled. Purchases
will be subject to compliance with applicable Canadian securities
laws. NFI is not required to purchase any or a particular number of
Shares under the NCIB.
Management believes NFI's strong free cash flow generation, low
leverage and revolving credit facility positions it well to
purchase Shares under the NCIB while permitting it to maintain its
current dividend rate and also consider strategic initiatives to
grow and diversify the business.
About NFI Group
With over 6,100 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 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) on proven bus platforms. It also supports
infrastructure development through New Flyer Infrastructure
Solutions™, a service dedicated to providing safe and reliable
charging and mobility solutions. In total, NFI supports over 74,000
buses and coaches currently in service across North America. For the fiscal year ended
December 31, 2017, NFI posted
revenues of US $2.4 billion.
Further information is available at www.nfigroup.com,
www.newflyer.com, www.mcicoach.com and www.arbocsv.com. The common
shares of NFI are traded on the Toronto Stock Exchange under the
symbol NFI.
Forward-Looking Statements
This press release may
contain forward-looking statements relating to expected future
events that involve risks and uncertainties, including statements
regarding potential future purchases by NFI Group of its Shares
pursuant to its NCIB. The future performance and prospects of NFI
Group 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 detailed in the disclosure documents
filed with the Canadian securities regulatory authorities and
available on SEDAR at www.sedar.com. NFI Group 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.