NFI Group Announces New Strategic UK Credit Facility
WINNIPEG, May 4, 2020 /CNW/ - (TSX: NFI) NFI Group Inc. ("NFI" or the "Company") today announced that it and its subsidiary, NFI International Limited, have entered into a new £50 million unsecured, revolving credit facility (the "UK Facility") to support Alexander Dennis Limited's ("ADL") United Kingdom ("UK") operations. ADL is a subsidiary of NFI International Limited.
The UK Facility is primarily a strategic borrowing initiative that management expects could lower interest expenses and withholding tax exposure as it allows the Company to better manage international transactions and borrowings. The UK Facility can be used for ADL's general corporate purposes and in addition to potential cost savings, also provides further liquidity for NFI.
The terms and covenants of the UK Facility are similar to the Company's existing credit facilities, with some specific modifications for local UK laws and regulations. The facility has a two year term with options to extend.
HSBC UK is the Administrative Agent for the UK Facility and HSBC UK and the Bank of America, Canada Branch were the two co-lenders and Mandated Lead Arrangers.
"This new facility is another strategic initiative that will help NFI better manage international currency, tax and transaction risks," said Pipasu Soni, Executive Vice President, and Chief Financial Officer, NFI Group. "The UK Facility, in combination with our previously announced credit covenant relief and new $250 million, unsecured credit facility, provides NFI with stronger credit flexibility and liquidity. Our banking partners continue to be strong supporters of NFI and this new UK Facility shows their continued confidence in our business."
About NFI Group
With more than 9,000 team members operating from 50 facilities across ten countries, NFI is a leading independent global bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer® (heavy-duty transit buses), Alexander Dennis Limited (single and double-deck buses), Plaxton (motor coaches), MCI® (motor coaches), ARBOC® (low-floor cutaway and medium-duty buses), and NFI Parts™. NFI vehicles 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). In total, NFI now supports over 105,000 buses and coaches currently in service around the world.
NFI common shares are traded on the Toronto Stock Exchange under the symbol NFI. Further information is available at www.nfigroup.com, www.newflyer.com, www.mcicoach.com, www.arbocsv.com, www.nfi.parts, www.alexander-dennis.com, and www.carfaircomposites.com.
Forward-Looking Statements
Certain statements in this press release are "forward looking statements", which reflect the expectations of management regarding the Company's future growth, liquidity, results of operations, performance and business prospects and opportunities. The words "believes", "anticipates", "plans", "expects", "intends", "projects", "forecasts", "estimates", "may", "will" and similar expressions are intended to identify forward looking statements. These forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved.
Actual results may differ materially and adversely from management expectations as projected in such forward-looking statements for a variety of reasons, including, but not limited to, the magnitude and length of the global, national and regional economic and social disruption being caused as a result of the global COVID-19 pandemic; the impact of national, regional and local governmental laws, regulations and "shelter in place" or similar orders relating to the COVID-19 pandemic which materially adversely impact the Company's ability to continue operations; additional partial or complete closures of one, more or all of the Company's facilities and work locations (including to protect the health and safety of the Company's employees) or the extension of such closures as a result of the COVID-19 pandemic; continuing and worsening supply delays and shortages of parts and components and disruption to labour supply as a result of the COVID-19 pandemic; the COVID-19 pandemic will likely adversely affect operations of customers as a result of shutdowns and/or disruptions to their operations and the services provided to their customers and end users; the Company's ability to obtain access to additional capital if required; the Company's financial performance and condition, obligations, cash flow and liquidity and its ability to maintain compliance with the covenants under its credit facilities, which may also negatively 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. These above risks relating to the impact of the COVID-19 pandemic may materially adversely impact the Company's business, operating performance and financial condition, including as a result of reduction to the Company's cashflow, liquidity and its ability to maintain compliance with covenants under its credit facilities. There can be no assurance that the Company will be able to maintain sufficient liquidity for an extended period, obtain future covenant relief under its credit facilities or access to additional capital or access to government financial support or as to when production operations will commence.
The Company cautions that due to the dynamic, fluid and highly unpredictable nature of the COVID-19 pandemic and its impact on global and local economies, businesses and individuals, it is impossible to predict the severity of the impact on the Company's business, operating performance and financial condition and any material adverse effects could very well be rapid, unexpected and may continue for an extended and unknown period of time. The extent of such impact will depend on future developments, which are unpredictable, including new information which may emerge concerning the spread and severity of COVID-19 and actions taken by governments and health organizations around the world to address its impact, among others.
Due to the potential impact of these and other 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 NFI Group Inc.
Stephen King, Group Director, Corporate Development and Investor Relations, NFI Group, 204.224.6382, [email protected]
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