New Flyer Announces Completion of Redemption of 14% Subordinated Notes and Declares August Dividend
WINNIPEG, MB, Aug. 20, 2012 /CNW/ – (TSX: NFI) (TSX: NFI.DB.U) New Flyer
Industries Inc. (“NFI”) and New Flyer Industries Canada ULC (“NFI ULC”,
together with NFI, the “Company” or “New Flyer”) announced today that
NFI ULC has completed the redemption of all of its outstanding 14.0%
subordinated notes (the “Subordinated Notes”), including those held
separately and those held in the form of an income deposit security
(“IDS”), in accordance with the terms of the trust indenture governing
the Subordinated Notes. The Subordinated Notes were redeemed for a
total price of C$58.4812 per C$55.30 principal amount of Subordinated
Notes, representing a redemption price of C$58.065 per C$55.30
principal amount of Subordinated Notes (or 105% of principal), plus all
accrued and unpaid interest to and including the redemption date.
The common shares of NFI (the “Shares”) forming part of an IDS will
commence trading separately at the open of markets today and continue
to be listed (together with the current separately-traded Shares) on
the Toronto Stock Exchange (the “TSX”) under the trading symbol “NFI”.
The IDSs are expected to be de-listed from the TSX at the close of
markets today. As previously announced, NFI ULC now intends to apply to
cease to be a reporting issuer under the securities laws of each
province and territory of Canada.
Non-registered holders (banks, brokerage firms or other financial
institutions) who held their interests in IDSs or Subordinated Notes
through CDS should contact their CDS customer services representative
with any questions about the redemption. Beneficial holders, including
retail investors, with any questions about the redemption should
contact their brokerage firm or financial institution which held their
interests in the IDSs or Subordinated Notes on their behalf.
As previously announced, the board of directors of NFI has approved a
new annual dividend rate of C$0.585 per Share, effective for dividends
declared following the redemption of the Subordinated Notes. NFI today
declared a dividend on the Shares in the amount of C$0.04875 per Share,
which will be payable on September 17, 2012, to holders of record at
the close of business on August 31, 2012. 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
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in
Canada and the United States. The Company’s three manufacturing
facilities – in Winnipeg, MB; St. Cloud, MN; and Crookston, MN – are
all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company
currently operates a parts fabrication facility in Elkhart, IN and four
parts distribution centers in Winnipeg, MB; Erlanger, KY; Fresno, CA
and Brampton, ON.
With a skilled workforce of over 2,000 employees, New Flyer is a
technology leader, offering the broadest product line in the industry,
including drive systems powered by clean diesel, LNG, CNG and electric
trolley as well as energy-efficient diesel-electric hybrid vehicles.
New Flyer has delivered over 31,000 heavy-duty buses in Canada and the
United States. All products are supported with an industry-leading,
comprehensive parts and service network.
Further information is available on New Flyer’s web site at www.newflyer.com.
The Shares and convertible debentures of NFI are traded on the TSX under
the symbols NFI and NFI.DB.U, respectively.
This press release contains forward-looking statements relating to
expected future events and financial and operating results of New Flyer
that involve risks and uncertainties. The words “believes”,
“anticipates”, “plans”, “expects”, “intends”, “projects”, “estimates”
and similar expressions are intended to identify forward looking
statements. 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 economic conditions of and funding availability for customers to
purchase buses and to exercise options for buses and to purchase parts
or services, the covenants contained in NFI ULC’s senior credit
facility, as amended, could impact the ability of New Flyer to continue
to fund dividends and take certain other actions, 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. Due to the potential impact of these factors, New Flyer 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 CANADA ULC