NFI announces up to US$150 million private placement of common shares to Coliseum Capital Management

Torys is acting as counsel to NFI with a team that includes Michael Amm, Robbie Leibel, Paulina Taneva and Tia Eisner (corporate/M&A).

On May 11, 2023, NFI Group Inc. (“NFI”) announced that it entered into an investment agreement with Coliseum Capital Management, LLC, as manager of certain funds and accounts (collectively, “Coliseum”), the current holder of 12.4% of NFI’s issued and outstanding common shares.

Under the terms of the investment agreement, Coliseum agreed to subscribe for and purchase from NFI an aggregate of up to 24,363,702 shares, on a private placement basis, at a subscription price of US$6.1567 per share, for aggregate gross proceeds to NFI of up to US$150,000,000.

Pursuant to the terms of the agreement, NFI also has the option to issue shares (or subscription receipts each convertible into one share) to investors other than Coliseum, at a price per security at least equal to the subscription price, prior to or concurrently with closing of the private placement with Coliseum. In the event of an alternative offering, the number of shares purchased by Coliseum will be reduced by an amount specified in the agreement. 

The private placement is expected to close on or prior to June 30, 2023, subject to customary conditions precedent and applicable regulatory approvals.

NFI intends to use the proceeds from the private placement with Coliseum to repay outstanding indebtedness under its existing credit facilities and for working capital and general corporate purposes.

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

NFI is a leading independent bus and coach manufacturer and a leader in electric mass mobility solutions.

Coliseum is a privately owned hedge fund sponsor, primarily providing services to pooled investment vehicles and corporations.