/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
BARRIE, ON, June 21 /CNW/ - Student Transportation Inc. ("ST Inc." or the "Company") (TSX:STB) announced today that it has closed its offering of 6.75% convertible subordinated unsecured debentures due June 30, 2015 at a price of $1,000 per debenture for total gross proceeds of $50 million. The offering was underwritten by a syndicate of underwriters led by Scotia Capital Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., TD Securities Inc., Wellington West Capital Markets Inc., Raymond James Ltd. and Cormark Securities Inc.
The net proceeds from the offering will be used to repay indebtedness under the Company's credit facilities and for general corporate purposes.
"We were very pleased with the results of the Underwriters and the positive response we received from investors on this offering. Our previous debenture offering completed in October 2009 has traded very nicely. Our share price is currently trading above the conversion premium," said Denis J. Gallagher, CEO of the Company. "With our disciplined growth strategy in place, we intend to increase our regional density this year and to aggressively market the conversion of school district owned operations to our budget friendly contracted model. The U.S. government stimulus program will run out shortly and there are 10,000 school districts still owning and operating their own fleets who we can help. We believe our new Education Stimulus Plan launched this year will be a potential growth area for us over the next few years."
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except, and in compliance with applicable U.S. state securities laws, in certain transactions exempt from the registration requirements of the U.S. Securities Act.
About Student Transportation Inc. (TSX:STB)
Founded in 1997, Student Transportation Inc. is North America's third-largest and fastest growing provider of school bus transportation services, operating more than 6,300 vehicles. Student Transportation'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 Student Transportation Inc.'s, Student Transportation of America ULC's and Student Transportation of America Holdings, Inc.'s (the "Company") results of operations, expense levels, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the Company's growth strategy and cash distributions. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "track", "targeted", "estimate", "anticipate", "believe", "should", "could", "plans" or "continue" or similar expressions suggesting future outcomes or events. These forward looking statements reflect the Company's current expectations regarding anticipated future events, results, circumstances, performance or expectations that are not historical facts. 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 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: For further information: Student Transportation Inc., Denis J. Gallagher, Chairman and Chief Executive Officer; Patrick J. Walker, Executive Vice President and Chief Financial Officer; Keith P. Engelbert, Director of Investor Relations, (732) 280-4200, (732) 280-4213 (FAX), Email: ir@rideSTA.com, Website: www.rideSTA.com