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TORONTO, March 29 /CNW/ - Student Transportation of America Ltd. ("STA")
announced today that it has closed its previously-announced private placement
for gross proceeds of $20,016,500. STA sold 3,010,000 common shares at a price
of $6.65 per common share in a private placement through a syndicate of agents
led by Wellington West Capital Markets Inc. and including CIBC World Markets
Inc., BMO Capital Markets and Sprott Securities Inc.
The proceeds of the offering will be used to repay debt that was drawn
down on a temporary basis to repurchase a portion of the outstanding class B
common shares of Student Transportation of America Holdings, Inc. (which
shares had an escalating dividend), and to repay debt incurred in connection
with a recently completed acquisition.
THE SECURITIES OFFERED HAVE NOT BEEN AND WILL NOT BE 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 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.
Student Transportation is the fifth-largest provider of school bus
transportation services in North America, conducting operations through local
operating subsidiaries. Student Transportation has become a leading school
transportation and management 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 visit www.sta-ips.com.
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", "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