/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
BARRIE, ON, May 17 /CNW/ - Student Transportation Inc. (the "Company")
(TSX:STB) announced today that it has entered into an agreement to sell
to a syndicate of underwriters led by Scotia Capital Inc. and National
Bank Financial Inc., and including BMO Capital Markets, CIBC, Raymond
James Ltd. and Wellington West Capital Markets Inc. on a bought deal
basis US$60.0 million aggregate principal amount of convertible
unsecured subordinated debentures due June 30, 2018 (the "Debentures").
The Debentures will bear interest at a rate of 6.25% per annum payable
semi-annually, and will be convertible at the option of the holder into
common shares of the Company at a conversion rate of 105.2632 common
shares per US$1,000 principal amount of Debentures, which is equal to a
conversion price of US$9.50 per common share (being C$1 converted at an
assumed exchange rate of US$1.026). The offering is expected to close
on or about June 7, 2011.
The Debentures to be issued under this offering will be offered by way
of a short form prospectus in each province and territory of Canada,
and in the United States on a private placement basis pursuant to an
exemption from the registration requirements of the United States
Securities Act of 1933, as amended.
The net proceeds of the offering will be used to repay debt and for
general corporate purposes.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Student Transportation Inc. (TSX:STB)
Founded in 1997, Student Transportation Inc. (STI) is North America's
third-largest and fastest-growing provider of school bus transportation
services, operating more than 7,000 vehicles. STI's family of local
companies delivers safe, reliable and cost-effective transportation
solutions to school districts throughout the U.S. and Canada. Services
are delivered by drivers, dispatchers, maintenance technicians,
terminal managers and others who are caring members of their local
communities. For more information, please visit www.rideSTA.com.
This news release contains "forward-looking statements" within the
meaning of applicable securities laws, which reflects the expectations
of management regarding the offering of the Debentures. Forward
looking statements involve significant risks and uncertainties, and
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 which or by the performance or results will be achieved. A
number of factors could cause our actual results to differ materially
from the results discussed, expressed or implied in any forward-looking
statement made by us or on our behalf, including, but not limited to,
the failure of the Company to complete the offering of the Debentures,
whether as a result of its inability to satisfy the conditions of the
offering or otherwise, as well the factors discussed under "Risk
Factors" in our Annual Information Form. These forward looking
statements are made as of the date of this news release and, except as
required by applicable law, we undertake no obligation to publicly
update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise.
SOURCE Student Transportation Inc.
For further information:
Student Transportation Inc.
Patrick J. Walker
Executive Vice President and Chief Financial Officer
Keith P. Engelbert
Director of Investor Relations
(732) 280-4213 (FAX)