June 08, 2016
The US$455 million cross-border takeover of Motor Coach International by Torys' client New Flyer Industries closed in December 2015 and involved reviews by both U.S. and Canadian competition agencies. Toronto partner Mike Amm and New York partner Stefan Stauder, both members of the Torys team representing New Flyer, were recently interviewed by Lexpert magazine in connection with the deal. Below are excerpts from the interview.
Stefan Stauder: "The relatively quick competition clearance in Canada and the US was attributable to the fact that there was little overlap between the businesses, which focused on different products and customers. The closing timing was also facilitated by the fact that the key terms of New Flyer’s credit facility had been agreed by the time the transaction was first announced and that the facility was fully underwritten by the lead banks without the need for an extended marketing period."
Mike Amm: "The US$455 million purchase price was fully financed by an upsizing of New Flyer’s senior credit facility up to US$825 million. This all-debt financing made the deal significantly more accretive to New Flyer’s shareholders without uncomfortably stretching leverage. New Flyer was fortunate to have strong relationships with its banking syndicate, led by The Bank of Nova Scotia and The Bank of Montreal. They quickly got comfortable with the deal and were very supportive through the execution phase."
To read the complete interview in Lexpert, click here.
For more detail about the transaction, click here.