/NOT FOR DISTRIBUTION IN THE US OR OVER US WIRE SERVICES/
BARRIE, ON, May 13 /CNW/ - Student Transportation of America Ltd. ("STA"
or the "Company") (TSX: STB, STB.UN) announced today that it has established a
Dividend Reinvestment Plan (the "Plan") to enable eligible shareholders of STA
to reinvest dividends paid on their common shares to additional common shares
of the Company. Common shares issued under the Plan will be issued directly
from the treasury of STA at a price based on the volume-weighted average of
the closing price of the common shares for the five (5) trading days
immediately preceding the relevant dividend date, less a 3% discount.
"This Plan is needed today for small and growing companies like ours,"
said STA Chairman and Chief Executive Officer Denis J Gallagher. "Reinvesting
in our company allows shareholders to accumulate additional common shares at a
discount and allows the company to use the cash that would have been paid to
reinvest in growing our business. It is the best of both worlds for the
company and the investor. Some of our largest shareholders have asked that we
begin such a plan to take advantage of the many opportunities we have in our
growth pipeline. I am pleased the Board acted in such an expedited manner to
address this issue, and I hope "value investors" see this as a positive way to
increase their holding in the company."
Beneficial shareholders may enrol in the Plan through the broker or
investment dealer through which they hold their shares. Registered
shareholders may enrol in the Plan at any time by completing a Plan enrolment
form, a copy of which may be obtained by contacting Computershare Trust
Company of Canada's National Customer Contact Centre at 1-800-564-6253 or from
the Agent's website at www.computershare.com. A shareholder must enrol in the
Plan no later than five (5) business days prior to a dividend record date, in
order for that cash dividend to be invested under the Plan on the
corresponding dividend payment date. Once enrolled, participation in the Plan
will continue automatically, unless terminated.
The company said its second largest shareholder, SNCF Participations, has
agreed to participate in the reinvestment plan. SNCF Participations' decision
will provide STA with additional cash for the company to use in its growth
STA reserves the right to amend, suspend or terminate the Plan at any
time, but such action shall have no retroactive effect that would prejudice
the interest of the participants under the Plan. All administrative costs
associated with the operation of the Plan will be paid by STA.
STA has reserved for issuance with the Toronto Stock Exchange 3,200,000
additional common shares to accommodate purchases under the Plan.
For more information about the Plan and its terms and conditions visit
www.rideSTA.com under Investors -(greater than) Reinvestment Plan.
The securities offered under the Plan 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 in certain
transactions exempt from the registration requirements of the U.S. Securities
Act. This release does not constitute an offer for sale of securities in the
Student Transportation is the fourth-largest provider of school bus
transportation services in North America, conducting operations through local
operating subsidiaries. Student Transportation 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 5,600 school vehicles in North America. For more
information, please visit www.rideSTA.com.
Certain statements in this news release are "forward-looking statements"
within the meaning of applicable securities laws, which reflect the
expectations of management regarding, among other matters, STA's revenues,
expense levels, cost of capital, financial leverage, seasonality, liquidity,
profitability of new businesses acquired or secured through bids, borrowing
availability, ability to renew or refinance various loan facilities as they
become due, ability to execute STA's growth strategy and cash distributions,
as well as their future growth, results of operations, performance and
business prospects and opportunities. Forward-looking statements generally can
be identified by the use of forward-looking terminology such as "may", "will",
"expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or
"continue" or similar expressions, and the negative forms thereof, suggesting
future outcomes or events.
These forward-looking statements reflect STA's current expectations
regarding future events and operating performance and speak only as of the
date of this news 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. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements,
including, but not limited to, the inability of STA to control its operating
expenses, its significant capital expenditures, its reliance on certain key
personnel, the possibility that a greater number of its employees will join
unions, its acquisition strategy, its inability to achieve our business
objectives, significant competition in its industry, rising insurance costs,
new governmental laws and regulations, its lack of insurance coverage for
certain losses, environmental requirements, seasonality of its industry, its
inability to maintain letters of credit and performance bonds and the
termination of certain of its contracts for reasons beyond its control.
Material factors and assumptions that were relied upon in making the
forward-looking statements include the number of Notes acquired pursuant to
the Exchange Offer, contract and customer retention, current and future
expense levels, availability of quality acquisition, bid and conversion
opportunities, current borrowing availability and financial ratios, as well as
current and historical results of operations and performance. Although the
forward-looking statements contained in this news release are based upon what
STA believes to be reasonable assumptions, investors cannot be assured that
actual results will be consistent with these forward-looking statements, and
the differences may be material. These forward-looking statements are made as
of the date of this news release and STA assumes no obligation to update or
revise them to reflect new events or circumstances, other than as required by
For further information:
For further information: INVESTOR CONTACTS: Student Transportation of
America Ltd., Denis J. Gallagher, Chairman and Chief Executive Officer, (732)
280-4200, (732) 280-4213 (FAX); Patrick J. Walker, Executive Vice President
and Chief Financial Officer, (732) 280-4200, (732) 280-4213 (FAX); Keith P.
Engelbert, Director of Investor Relations, (732) 280-4200, (732) 280-4213
(FAX), Email: kengelbert@rideSTA.com, Website: www.rideSTA.com