/NOT FOR RELEASE OVER US NEWSWIRE SERVICES/
TORONTO, March 20 /CNW/ - Student Transportation of America Ltd.
("STA Ltd.") and Student Transportation of America ULC ("STA ULC", and
together with STA Ltd., the "Issuer") (TSX: STB.UN) today announced that a
cash payment of Cdn $0.09125000 per income participating security ("IPS") of
the Issuer will be payable on April 16, 2007 to holders of record of IPSs at
the close of business on March 31, 2007.
Each IPS consists of one common share of STA Ltd. and Cdn $3.847
principal amount of 14 per cent subordinated notes of STA ULC, a wholly-owned
subsidiary of STA Ltd. The IPSs trade on the Toronto Stock Exchange under the
symbol STB.UN. The total payment of $0.09125000 per IPS reflects a cash
dividend of $0.04636833 per common share and an interest payment of
$0.04488167 per IPS for the period from March 1 to March 31, 2007, as provided
in the subordinated note indenture.
Student Transportation of America Ltd. designates this dividend to be an
"eligible dividend" pursuant to subsection 89(14) of the Income Tax Act
(Canada) and its equivalent in any provinces of Canada.
For clarity, with respect to any holders that hold common shares of STA
Ltd. (TSX: STB) and/or subordinated notes of STA ULC (TSX: STB.DB) separately
(as opposed to in the form of an IPS), the payment will be a cash dividend of
$0.04636833 per common share and a cash interest payment of $0.04488167 per
Cdn.$3.847 of subordinate note.
The Issuer is the fifth-largest provider of school bus transportation
services in North America, conducting operations through local operating
subsidiaries. The Issuer has become a leading school bus transportation
company by aggregating operations through the consolidation of existing
providers and conversion of in-house operations and currently operates more
than 4,000 school vehicles in North America. For more information, please
This news release contains "forward-looking statements" within the
meaning of applicable securities laws, which reflects the expectations of
management regarding the Issuer's and Company's 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.
For further information:
For further information: Denis J. Gallagher, Chairman and Chief
Executive Officer, Phone: (732) 280-4200, Fax: (732) 280-4213; Patrick J.
Walker, Chief Financial Officer, Phone: (732) 280-4200, Fax: (732) 280-4213;
Keith P. Engelbert, Director of Investor Relations, Phone: (732) 280-4200,
Fax: (732) 280-4213, email@example.com