NFI Group closes bought deal financing and senior credit amendments

On December 2, 2021, NFI Group Inc. (“NFI”) closed its bought deal financing of 6,110,000 common shares at a price of C$24.55 per share for aggregate gross proceeds of C$150 million and C$338 million aggregate principal amount of convertible unsecured debentures issued, for total aggregate gross proceeds to the company of approximately C$488 million. The debentures have a coupon of 5% per annum, and a conversion price of C$33.15 per common share. The debentures will mature on January 15, 2027.

The offering was led by a syndicate of underwriters including BMO Capital Markets, CIBC Capital Markets, National Bank Financial, and Scotiabank.

The company intends to use the net proceeds from the offering to reduce the outstanding balance under its senior credit facilities. In connection with the bought deal financing, NFI obtained amendments to its main US$1.25 billion senior credit facility and its GBP 50 million senior credit facilty to, among other things, provide flexibility with respect to key financial covenants (total leverage ratio and interest coverage ratio) for fiscal 2022 and 2023.

Further information can be found on Globe Newswire’s website.

NFI Group is a leading global independent bus and coach manufacturer providing a comprehensive suite of mass mobility solutions, including infrastructure and technology, through their known and respected brands.