New Flyer Announces Amended and Restated Credit Facility

    WINNIPEG, April 24 /CNW/ - New Flyer Industries Inc. (TSX:NFI.UN) ("New
Flyer" or the "Company"), the leading manufacturer of heavy-duty transit buses
in Canada and the United States, is pleased to announce that New Flyer
Industries Canada ULC and New Flyer of America Inc., the Company's Canadian
and American operating subsidiaries, have entered into an amended and restated
credit facility agreement (the "New Credit Facility") with The Bank of Nova
Scotia, as lead arranger, sole book runner and administrative agent and a
syndicate of leading Canadian and American financial institutions in the
amount of US$180 million. The New Credit Facility refinances New Flyer's
existing senior credit facility which was scheduled to mature in August 2009.
The New Credit Facility matures on April 24, 2012 and consists of a US$90
million term loan, a US$50 million revolver and a US$40 million letter of
credit facility.
    In total, initial proposed commitments received from lenders under the
New Credit Facility exceeded the required size of the facility by over 20%.
The lending syndicate includes The Bank of Nova Scotia, Bank of Montreal,
Export Development Canada, Canadian Imperial Bank of Commerce, Bank of
America, Laurentian Bank and The Toronto-Dominion Bank.
    In connection with the New Credit Facility, the borrowers will be rolling
over existing cross-currency interest rate swaps designed to hedge floating
rate exposure for the term of the New Credit Facility. Based on the interest
rate applicable to the term portion of the New Credit Facility and the terms
of the swap, management expects that the overall interest costs of the term
portion of the New Credit Facility will not exceed those of the previous
credit facility.
    In light of the current challenges faced by many companies seeking to
access the tightening credit markets, management believes this refinancing is
a testament to the strength of the Company's current and projected financial
performance and the positive growth outlook for the business.

    About New Flyer

    New Flyer is the leading manufacturer of heavy-duty transit buses in
Canada and the United States. The Company's three facilities - in Winnipeg,
MB, St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS
18001 certified. With a skilled workforce of approximately 2,500 employees,
New Flyer is a technology leader in the heavy-duty transit market, offering
the broadest product line in the industry, including drive systems powered by
clean diesel, LNG, CNG and electric trolley, as well as energy-efficient
gasoline-electric and diesel-electric hybrid vehicles. All of New Flyer's
products are supported by an industry-leading, comprehensive parts and service
network. The IDSs are listed on the Toronto Stock Exchange under the symbol

    Forward-Looking Statements

    Certain statements in this press release are "forward-looking
statements", which reflect the expectations of management regarding the
Company's future growth, results of operations, performance and business
prospects and opportunities. The words "believes", "anticipates", "plans",
"expects", "intends", "projects", "estimates" ,"outlook" and similar
expressions are intended to identify forward-looking statements. These
forward-looking statements reflect management's current expectations regarding
future events, including the Company's operating performance and future growth
and speak only as of the date of this press release. Forward-looking
statements involve significant risks and uncertainties, should not be read as
guarantees of future performance, results or events, and will not necessarily
be accurate indications of whether or not or the times at or by which such
events will occur or results will be achieved. A number of factors could cause
actual results or future events to differ materially from those discussed in
the forward-looking statements. Such differences may be caused by factors
which include, but are not limited to, volatility in the credit markets,
competition in the heavy-duty transit bus industry, availability of funding to
the Company's customers at current levels or at all, material losses and costs
may be incurred as a result of product warranty issues, material losses and
costs may be incurred as a result of product liability claims, changes in
Canadian or United States tax legislation, the Company's success depends on a
limited number of key executives who the Company may not be able to adequately
replace in the event that they leave the Company, the absence of fixed term
customer contracts and the termination of contracts by customers for
convenience, the current "Buy-America" legislation may change and/or become
more onerous, production delays may result in liquidated damages under the
Company's contracts with its customers, currency fluctuations could adversely
affect the Company's financial results or competitive position in the
industry, the Company may not be able to maintain performance bonds or letters
of credit required by its existing contracts or obtain performance bonds and
letters of credit required for new contracts, third party debt service
obligations may have important consequences to the Company, the covenants
contained in the senior credit facility and subordinated note indenture of New
Flyer Industries Canada ULC could impact the ability of the Company to fund
distributions and take certain other actions, interest rates could change
substantially and materially impact the Company's profitability, the
dependence on limited sources of supply, the possibility of fluctuations in
the market prices of the pension plan investments and discount rates used in
the actuarial calculations will impact pension expense and funding
requirements, the Company's profitability and performance can be adversely
affected by increases in raw material and component costs and the availability
of labour could have an impact on production levels. The Company cautions that
this list of factors is not exhaustive. These factors and other risks and
uncertainties are discussed in the Company's materials filed with the Canadian
securities regulatory authorities and available on SEDAR at
    Although the forward-looking statements contained in this press release
are based upon what management 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 press release and
the Company assumes no obligation to update or revise them to reflect new
events or circumstances, except as required by applicable securities laws.

For further information:

For further information: New Flyer Industries Inc., Glenn Asham, Chief
Financial Officer, Tel: (204) 224-1251, E-mail:

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