NFI Group Inc. Announces Bought Deal Financing for Gross Proceeds of Approximately C$250 Million

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Equity offering will strengthen NFI’s balance sheet, reduce leverage, improve liquidity, and position the company to capitalize on operational enhancements and growth opportunities

WINNIPEG, Manitoba, Feb. 03, 2021 (GLOBE NEWSWIRE) -- (TSX:NFI) NFI Group Inc. ("NFI" or the "Company"), one of the world’s leading independent bus and coach manufacturers, today announced that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by Scotiabank, BMO Capital Markets and CIBC Capital Markets pursuant to which the Company will issue from treasury, and the Underwriters will purchase on a bought deal basis, 8,446,000 common shares (the “Shares”) at a price of C$29.60 per Share for gross proceeds to the Company of approximately C$250 million (the “Offering”).

The Company has also granted to the Underwriters an over-allotment option to purchase up to an additional 1,266,900 Shares at a price of C$29.60 per Share, representing 15% of the size of the Offering. The over-allotment option may be exercised until 30 days following the closing of the Offering. The Shares will be offered by way of a short form prospectus in each of the provinces and territories of Canada. The Shares may also be offered by way of private placement in the United States pursuant to applicable registration exemptions.

The Company intends to use the net proceeds of the Offering to reduce the outstanding balance under its revolving senior credit facility. This is expected to strengthen NFI’s balance sheet, reduce leverage and interest expense and significantly increase liquidity. NFI believes that this will provide the Company with additional financial flexibility to pursue its operational and strategic goals, such as investments in NFI’s zero-emission products and electric propulsion technology, investments required under the previously disclosed NFI Forward cost-reduction initiative and other potential growth opportunities.

The Company also announced that it expects Adjusted EBITDA¹ for the fiscal year ending December 27, 2020 to be near the high end of its previously announced guidance of US$145 million to US$155 million. The Company cautions that this indication is preliminary, unaudited and subject to change as management completes its year-end financial procedures. NFI plans to announce its fourth quarter and 2020 year-end results on March 4, 2021 prior to market open.