WINNIPEG, Feb. 15, 2013 /CNW/ - (TSX:NFI,TSX:NFI.DB.U) New Flyer Industries Inc. ("New Flyer" or the "Company") announced today the closing of the first tranche of the previously announced (January 23, 2013) strategic investment of C$116 million by Marcopolo S.A. to acquire 19.99% of New Flyer.
The initial tranche of 4,925,530 common shares, representing a 9.99% stake in the Company, were issued to a wholly-owned subsidiary of Marcopolo S.A., for aggregate consideration of approximately C$51.7 million. The remainder of the shares will be issued to Marcopolo in a single additional tranche over the next 12 months as determined by New Flyer based on its investment and financing needs and in certain other circumstances.
The Company also today declared a dividend on the common shares of New Flyer (the "Shares") in the amount of C$0.04875 per Share to holders of record at the close of business on February 28, 2013. The dividend will be payable on March 15, 2013. New Flyer has paid dividends to shareholders for 88 consecutive months since the Company's initial public offering in August 2005.
The dividends on the Shares are designated as "eligible dividends" for purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. The Company's three manufacturing facilities - in Winnipeg, MB; St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company currently operates a parts fabrication facility in Elkhart, IN and four parts distribution centers in Winnipeg, MB; Brampton, ON; Erlanger, KY and Fresno, CA. The Company also operates a New Product Development center in Winnipeg, MB and a service center in Arnprior, ON. With a skilled workforce of over 2,200 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, natural gas, electric trolley as well as energy-efficient diesel-electric hybrid and now all-electric battery vehicles. New Flyer has delivered over 32,000 heavy-duty buses in Canada and the United States. All products are supported with an industry-leading, comprehensive parts and service network. Further information is available on New Flyer's web site at www.newflyer.com. The common shares and convertible unsecured subordinated debentures of New Flyer are traded on the Toronto Stock Exchange under the symbols NFI and NFI.DB.U, respectively.
This press release may contain forward-looking statements relating to expected future events, including the timing, and completion, of the second tranche of the investment by Marcopolo. 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. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including the completion of the second tranche of the investment by Marcopolo, risks related to acquisitions, joint ventures and other strategic relationships with third parties, market and general economic conditions and economic conditions of and funding availability for customers to purchase buses and to purchase parts or services, customers may not exercise options to purchase additional buses, the ability of customers to terminate contracts for convenience, the covenants contained in the Company's senior credit facility could impact the ability of the Company to fund dividends and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE: New Flyer Industries Inc.
For further information:
Chief Financial Officer
Ph: (204) 224-1251