WINNIPEG, Jan. 17, 2019 /CNW/ - (TSX:NFI) NFI Group Inc. ("NFI") today announced that the Toronto Stock Exchange ("TSX") has accepted a notice filed by NFI of its intention to amend its existing normal course issuer bid ("NCIB") for its common shares (the "Shares"). The maximum number of Shares which may be purchased under the NCIB will increase from 2,774,733 Shares, being 5% of the public float, to 5,549,465 Shares, which equals 10% of the public float, in each case as of the date of commencement of the NCIB. No other terms of the NCIB have been amended. NFI believes that the Shares are currently trading in a price range that does not fully reflect their value and that the acquisition of Shares may represent an attractive and desirable use of its funds.
NFI has been actively purchasing Shares under the existing NCIB since it was commenced. As of the close of business on January 16, 2019, 2,153,275 Shares (approximately $89,131,159 CAD)) have been purchased. Pursuant to the amended NCIB, NFI can purchase up to 3,396,191 Shares (taking into account the prior purchases).
Purchases will terminate on June 13, 2019, or earlier should NFI complete its purchases prior to such date. All purchases will be made through the facilities of the TSX and any alternative Canadian trading systems and all Shares acquired under the NCIB will be cancelled. Purchases will be subject to compliance with applicable Canadian securities laws. NFI is not required to purchase any or a particular number of Shares under the NCIB.
Management believes NFI's strong free cash flow generation, low leverage and revolving credit facility positions it well to purchase Shares under the NCIB while permitting it to maintain its current dividend rate and also consider strategic initiatives to grow and diversify the business.
About NFI Group
With over 6,100 team members, operating from 31 facilities across Canada and the United States, NFI is North America's largest bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer® (heavy-duty transit buses), ARBOC® (low-floor cutaway and medium-duty buses), MCI® (motor coaches), and NFI Parts™ (parts, support, and service). NFI buses incorporate the widest range of drive systems available including: clean diesel, natural gas, diesel-electric hybrid, and zero-emission electric (trolley, battery, and fuel cell) on proven bus platforms. It also supports infrastructure development through New Flyer Infrastructure Solutions™, a service dedicated to providing safe and reliable charging and mobility solutions. In total, NFI supports over 74,000 buses and coaches currently in service across North America. For the fiscal year ended December 31, 2017, NFI posted revenues of US $2.4 billion.
This press release may contain forward-looking statements relating to expected future events that involve risks and uncertainties, including statements regarding potential future purchases by NFI Group of its Shares pursuant to its NCIB. The future performance and prospects of NFI Group may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the other risks and uncertainties detailed in the disclosure documents filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. NFI Group 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 NFI Group Inc.
For further information: Stephen King, Group Director, Corporate Development and Investor Relations, NFI Group Inc., Ph: 204-224-6382, Stephen_King@NewFlyer.com