WINNIPEG, Sept. 15, 2011 /CNW/ - (TSX:NFI) (TSX:NFI.UN) New Flyer
Industries Inc. ("NFI") declared today a dividend on the common shares
of NFI (the "Shares"), including those Shares held separately and those
Shares held in the form of an income deposit security ("IDS"), in the
amount of C$0.007167 per Share, which will be payable on October 17,
2011, to holders of record at the close of business on September 30,
2011. The Shares that are held separately trade on the Toronto Stock
Exchange (the "TSX") under the symbol NFI and the Shares that are held
in the form of an IDS trade on the TSX under the symbol NFI.UN.
The regular monthly cash interest payment of C$0.06452 per C$5.53
principal amount of subordinated notes (the "Subordinated Notes") of
New Flyer Industries Canada ULC ("NFI ULC", and together with NFI, "New
Flyer") will also be paid on October 17, 2011 to holders of
Subordinated Notes (including those held separately and those held in
the form of an IDS) of record at the close of business on September 30,
2011. As a result, holders of record of IDSs will receive a total
distribution of C$0.07167 per IDS, representing a cash dividend of
C$0.007167 per Share and an interest payment of C$0.06452 per C$5.53
principal amount of Subordinated Notes for the period from September 1,
2011 to September 30, 2011.
As previously announced, NFI is proposing a 10:1 consolidation of Shares
at the special meeting of Shareholders to be held on September 30,
2011. No fractional Shares will be issued on the consolidation and, in
the event that a Shareholder would otherwise be entitled to receive a
fractional Share upon the consolidation, such fraction will be rounded
down to the nearest whole number. If the Shareholders pass the
resolution to consolidate the Shares as proposed, management expects to
effect the consolidation as soon as practicable after the meeting and
prior to the September monthly dividend payment date of October 17.
As such, if the consolidation is implemented, the September dividend per
Share of C$0.007167 per Share will be adjusted to C$0.07167 per Share
to reflect the 10:1 consolidation, and the ratio of Shares and
principal amount of Subordinated Notes representing an IDS will also be
adjusted such that, following the Share consolidation, each IDS will
represent: (i) one Share; and (ii) C$55.30 principal amount of
Subordinated Notes. Accordingly, subject to the elimination of
fractional Shares on the consolidation, distributions to the holders of
Shares, Subordinated Notes and IDSs will be unaffected by the Share
The dividends on the Shares (including those Shares forming part of the
IDSs) 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
three parts distribution centers in Winnipeg, MB; Erlanger, KY; and
Fresno, CA. A fourth PDC is expected to open in Ontario in 2011.
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.
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.
This press release may contain forward-looking statements relating to
expected future events and financial and operating results of New Flyer
that involve risks and uncertainties. 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, the covenants contained in NFI ULC's
senior credit facility and subordinated note indenture and the other
risks and uncertainties detailed in the disclosure documents filed with
the Canadian securities regulatory authorities. 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 Inc.
For further information:
New Flyer Industries Inc.
Glenn Asham, Chief Financial Officer