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 4,925,530common 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.
Forward-Looking Statements
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.
