Student Transportation of America Ltd. Closes $42 Million Offering of Common Shares


    BARRIE, ON, June 4 /CNW/ - Student Transportation of America Ltd. ("STA"
or the "Company") (TSX:STB) announced today that it has closed its offering of
common shares at a price of $3.50 per common share for total gross proceeds of
$42 million. The offering was underwritten by a syndicate of underwriters led
by Cormark Securities Inc. and Scotia Capital Inc. and includes BMO Nesbitt
Burns Inc., Wellington West Capital Markets Inc., CIBC World Markets Inc. and
National Bank Financial Inc. The Company now has over 54 million common shares
    The net proceeds from the offering will be used, directly and indirectly,
to repay indebtedness under the Issuer's credit facilities, which will provide
additional borrowing capacity to fund the Issuer's continued growth strategy,
including through acquisition, bid-in and conversion opportunities, and for
general corporate purposes. The indebtedness to be repaid was incurred in the
last two years for growth purposes. As previously disclosed, the Company has
already secured new bid award contracts for the 2010 fiscal year which is
expected to generate approximately US$25.0 million in additional annual
    "This new equity raise allows us to continue our growth strategy as we
head into our new fiscal year," said Denis J Gallagher, CEO. "We are advised
that a good portion of the participation in this offering is going to retail
investors who, we are glad to see, appreciate the value of our stable
predictable cash flows and dividends. We remain committed to long term
investors and we hope to attract new shareholders as we continue to build a
great company. We also understand that two additional investment banks will be
launching coverage on our common shares to add to the four currently providing
    The securities offered 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, and in compliance with applicable
U.S. state securities laws, in certain transactions exempt from the
registration requirements of the U.S. Securities Act.


    Student Transportation of America is the fourth-largest provider of
school bus transportation services in North America, conducting operations
through local operating subsidiaries. Student Transportation of America 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

    Forward-Looking Statements

    This news release contains "forward-looking statements" within the
meaning of applicable securities laws including, but not limited to, those
identified by the expressions "expect", "intend", "will" and similar
expressions to the extent they relate to STA. These forward looking statements
are not historical facts and reflect expectations of management regarding
future results or events. 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 or by which the performance or results will be achieved. A
number of factors could cause 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 risk that the
conditions to the offering will not be satisfied and/or that the offering will
not close, as well as the factors discussed under "Risk Factors" in our Annual
Information Form. Material factors and assumptions that were relied upon in
making the forward-looking statements include, but are not limited to, that
the conditions to the offering will be satisfied and that the offering will
close. 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, 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: INVESTOR CONTACTS: Student Transportation of
America Ltd., Denis J. Gallagher, Chairman and CEO, (732) 280-4200; Patrick J.
Walker, Executive VP and CFO, (732) 280-4200; Keith P. Engelbert, Director of
Investor Relations, (732) 280-4200, (732) 280-4213 (FAX), Email:; Website:

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