Closing of Bought Deal Financing Not for distribution to U.S. newswires or for dissemination in the United States
WINNIPEG, Manitoba, Dec. 02, 2021 (GLOBE NEWSWIRE) -- (TSX:NFI, NFI.DB) NFI Group Inc. ("NFI" or the "Company"), one of the world’s leading independent bus and coach manufacturers, today announced that it has closed its previously announced bought deal financing (the “Offering”). Pursuant to the Offering a total of 6,110,000 common shares of NFI (the “Shares”) were issued at a price of C$24.55 per share and C$300 million aggregate principal amount of convertible unsecured debentures (the "Debentures") were issued, for total aggregate gross proceeds to the Company of approximately C$450 million.
The Offering was led by a syndicate of underwriters including BMO Capital Markets, CIBC World Markets, National Bank Financial and Scotiabank. The Debentures have a coupon of 5% per annum, and a conversion price of C$33.15 per Share, subject to adjustments in certain circumstances. The Debentures will mature on January 15, 2027 (the “Maturity Date”).
The Company intends to use the net proceeds of the Offering to reduce the outstanding balance under its senior credit facilities. Reduced borrowings under its senior credit facilities, together with certain amendments to those facilities that came into effect today and which provide flexibility with respect to key financial covenants (total leverage ratio and interest coverage ratio) for fiscal 2022 and 2023, will provide NFI with greater flexibility to navigate the ongoing global supply chain disruptions, while permitting the Company to continue to pursue its operational and strategic goals, such as investments in NFI’s zero-emission products and electric propulsion technology and other potential growth or business enhancement opportunities.
The Shares and Debentures were offered pursuant to a short form prospectus dated November 29, 2021, filed in each of the provinces and territories of Canada. A copy of the prospectus is available under the Company's profile on SEDAR at www.sedar.com.
In connection with the Offering, the Company has also granted the underwriters over-allotment options to purchase up to an additional 916,500 Shares at a price of C$24.55 per Share and an additional C$45 million aggregate principal amount of Debentures, in each case to cover overallotments and for market stabilization purposes. Both over-allotment options are exercisable in whole or in part at any time up to the 30th day following the closing of the Offering.
This news release does not constitute an offer of securities for sale in the United States. The securities were not offered and have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration or an applicable exemption from U.S. registration requirements.
https://www.globenewswire.com/news-release/2021/12/02/2345170/0/en/NFI-Group-Inc-Announces-Closing-of-Bought-Deal-Financing-for-Gross-Proceeds-of-Approximately-C-450-Million.html