NFI pronounces receipt of senior credit score facility extensions to assist complete refinancing plan
WINNIPEG, Manitoba, July 31, 2023 (GLOBE NEWSWIRE) — (TSX: NFI, OTC: NFYEF, TSX: NFI.DB, TSX: NFI.R) NFI Group Inc. (“NFI” or the “Firm”), a number one unbiased bus and coach producer and a pacesetter in electrical mass mobility options, at the moment introduced that it has acquired an extension of the date for the completion of the required amendments and the monetary covenant waivers beneath the Firm’s current North American senior secured credit score facility (the “North American Facility”) to August 25, 2023 and August 31, 2023, respectively, to assist completion of NFI’s beforehand introduced complete refinancing plan (the “Refinancing Plan”).
NFI has additionally acquired affirmation of the extension of the maturity date and monetary covenant waivers beneath its senior secured UK credit score facility (the “UK Facility”, and collectively with the North American Facility, the “Secured Amenities”) to August 31, 2023.
NFI expects to shut all components of the Refinancing Plan concurrently previous to August 31, 2023.
About NFI
Leveraging 450 years of mixed expertise, NFI is main the electrification of mass mobility around the globe. With zero-emission buses and coaches, infrastructure, and know-how, NFI meets at the moment’s city calls for for scalable good mobility options. Collectively, NFI is enabling extra livable cities by way of linked, clear, and sustainable transportation.
With 7,700 crew members in ten nations, NFI is a number one world bus producer of mass mobility options beneath the manufacturers New Flyer ® (heavy-duty transit buses), MCI ® (motor coaches), Alexander Dennis Restricted (single- and double-deck buses), Plaxton (motor coaches), ARBOC ® (low-floor cutaway and medium-duty buses), and NFI Elements™. NFI at present provides the widest vary of sustainable drive techniques accessible, together with zero-emission electrical (trolley, battery, and gasoline cell), pure fuel, electrical hybrid, and clear diesel. In complete, NFI helps its put in base of over 100,000 buses and coaches around the globe. NFI’s widespread shares (the “Shares”) commerce on the Toronto Inventory Trade (“TSX”) beneath the image NFI, its convertible unsecured debentures (the “Debentures”) commerce on the TSX beneath the image NFI.DB and its subscription receipts commerce on the TSX beneath the image NFI.R. Information and knowledge is out there at www.nfigroup.com , www.newflyer.com , www.mcicoach.com , www.nfi.elements , www.alexander-dennis.com , www.arbocsv.com , and www.carfaircomposites.com .
For investor inquiries, please contact:
Stephen King
P: 204.792.1300
Stephen.King@nfigroup.com
Ahead-Trying Statements
This press launch comprises “forward-looking info” and “forward-looking statements” inside the which means of relevant Canadian securities legal guidelines, which replicate the expectations of administration concerning the completion of the Firm’s Refinancing Plan, the Firm’s future progress, monetary efficiency, and liquidity and goals and the Firm’s strategic initiatives, plans, enterprise prospects and alternatives, together with the period, impression of and restoration from the COVID-19 pandemic, provide chain disruptions and plans to handle them, and the Firm’s expectation of acquiring long-term credit score preparations and ample liquidity. The phrases “believes”, “views”, “anticipates”, “plans”, “expects”, “intends”, “initiatives”, “forecasts”, “estimates”, “steering”, “targets”, “goals” and “targets” and comparable expressions of future occasions or conditional verbs resembling “might”, “will”, “ought to”, “may” and “would” are meant to determine forward-looking statements. These forward-looking statements replicate administration’s present expectations concerning future occasions (together with the short-term nature of the provision chain disruptions and operational challenges, manufacturing enchancment, labour provide shortages, the restoration of the Firm’s markets and the anticipated advantages to be obtained by way of its “NFI Ahead” initiatives) and the Firm’s monetary and working efficiency and converse solely as of the date of this press launch. By their very nature, forward-looking statements require administration to make assumptions and contain vital dangers and uncertainties, shouldn’t be learn as ensures of future occasions, efficiency or outcomes, and provides rise to the likelihood that administration’s predictions, forecasts, projections, expectations or conclusions won’t show to be correct, that the assumptions will not be right and that the Firm’s future progress, monetary situation, capability to generate ample money circulation and keep ample liquidity, and full the financing transactions in accordance with the Firm’s Refinancing Plan, and the Firm’s strategic initiatives, goals, plans, enterprise prospects and alternatives, together with the Firm’s plans and expectations referring to the period, impression of and restoration from the COVID-19 pandemic, provide chain disruptions, operational challenges, labour provide shortages and inflationary pressures, won’t happen or be achieved. There might be no assurance that the transactions comprising the Refinancing Plan shall be accomplished on the phrases disclosed or in any other case.
Numerous elements which will trigger precise outcomes to vary materially from the outcomes mentioned within the forward-looking statements embody: the Firm’s enterprise, working outcomes, monetary situation and liquidity could also be materially adversely impacted by the continuing COVID-19 pandemic and associated provide chain and operational challenges, inflationary results and labour provide challenges; the Firm’s enterprise, working outcomes, monetary situation and liquidity could also be materially adversely impacted by the continuing Russian invasion of Ukraine attributable to elements together with however not restricted to additional provide chain disruptions, inflationary pressures and tariffs on sure uncooked supplies and elements; funding might not proceed to be accessible to the Firm’s clients at present ranges or in any respect; the Firm’s enterprise is affected by financial elements and adversarial developments in financial situations which may have an adversarial impact on the demand for the Firm’s merchandise and the outcomes of its operations; foreign money fluctuations may adversely have an effect on the Firm’s monetary outcomes or aggressive place; rates of interest may change considerably, materially impacting the Firm’s income and profitability; an lively, liquid buying and selling marketplace for the Shares and/or the Debentures might stop to exist, which can restrict the flexibility of safety holders to commerce Shares and/or Debentures; the market worth for the Shares and/or the Debentures could also be risky; if securities or trade analysts don’t publish analysis or experiences in regards to the Firm and its enterprise, in the event that they adversely change their suggestions concerning the Shares or if the Firm’s outcomes of operations don’t meet their expectations, the Share worth and buying and selling quantity may decline, as well as, if securities or trade analysts publish inaccurate or unfavorable analysis in regards to the Firm or its enterprise, the Share worth and buying and selling quantity of the Shares may decline; competitors within the trade and entrance of recent rivals; present necessities beneath U.S. “Purchase America” laws might change and/or turn into extra onerous or suppliers’ “Purchase America” content material might change; failure of the Firm to adjust to the U.S. Deprived Enterprise Enterprise (“DBE”) program necessities or the failure to have its DBE targets authorised by the U.S. FTA; absence of fastened time period buyer contracts, train of choices and buyer suspension or termination for comfort; native content material bidding preferences in america might create a aggressive drawback; necessities beneath Canadian content material insurance policies might change and/or turn into extra onerous; the Firm’s enterprise could also be materially impacted by local weather change issues, together with dangers associated to the transition to a lower-carbon economic system; operational danger ensuing from insufficient or failed inside processes, folks and/or techniques or from exterior occasions, together with fiduciary breaches, regulatory compliance failures, authorized disputes, enterprise disruption, pandemics, floods, know-how failures, processing errors, enterprise integration, harm to bodily belongings, worker security and insurance coverage protection; worldwide operations topic the Firm to extra dangers and prices and will trigger profitability to say no; compliance with worldwide commerce laws, tariffs and duties; dependence on distinctive or restricted sources of provide (resembling engines, elements containing microprocessors or, in different instances, for instance, the provision of transmissions, batteries for battery-electric buses, axles or structural metal tubing) ensuing within the Firm’s uncooked supplies and elements not being available from different sources of provide, being accessible solely in restricted provide, or creating challenges the place a selected element could also be specified by a buyer, the Firm’s merchandise have been engineered or designed with a element distinctive to 1 provider or a provider might have restricted or no provide of such uncooked supplies or elements or sells such uncooked supplies or elements to the Firm on lower than favorable industrial phrases; the Firm’s autos and sure different merchandise comprise electrical elements, electronics, microprocessors management modules, and different laptop chips, for which there was a surge in demand, leading to a worldwide provide scarcity of such chips within the transportation trade, and a scarcity or disruption of the provision of such microchips may materially disrupt the Firm’s operations and its capability to ship merchandise to clients; dependence on provide of engines that adjust to emission laws; a disruption, termination or alteration of the provision of car chassis or different vital elements from third-party suppliers may materially adversely have an effect on the gross sales of sure of the Firm’s merchandise; the Firm’s profitability might be adversely affected by will increase in uncooked materials and element prices; the Firm might incur materials losses and prices because of product guarantee prices, recollects, failure to adjust to motorized vehicle manufacturing laws and requirements and the remediation of transit buses and motor coaches; manufacturing delays might lead to liquidated damages beneath the Firm’s contracts with its clients; catastrophic occasions, together with these associated to impacts of local weather change, might result in manufacturing curtailments or shutdowns; the Firm might not be capable to efficiently renegotiate collective bargaining agreements once they expire and could also be adversely affected by labour disruptions and shortages of labour; the Firm’s operations are topic to dangers and hazards which will lead to financial losses and liabilities not lined by insurance coverage or which exceed its insurance coverage protection; the Firm could also be adversely affected by rising insurance coverage prices; the Firm might not be capable to keep efficiency bonds or letters of credit score required by its contracts or receive efficiency bonds and letters of credit score required for brand new contracts; the Firm is topic to litigation within the atypical course of enterprise and will incur materials losses and prices because of product legal responsibility and different claims; the Firm might have problem promoting pre-owned coaches and realizing anticipated resale values; the Firm might incur prices in reference to laws referring to axle weight restrictions and automobile lengths; the Firm could also be topic to claims and liabilities beneath environmental, well being and security legal guidelines; dependence on administration info techniques and cyber safety dangers; the Firm’s capability to execute its technique and conduct operations depends upon its capability to draw, practice and retain certified personnel, together with its capability to retain and entice executives, senior administration and key staff; the Firm could also be uncovered to liabilities beneath relevant anti-corruption legal guidelines and any willpower that it violated these legal guidelines may have a fabric adversarial impact on its enterprise; the Firm’s danger administration insurance policies and procedures will not be absolutely efficient in reaching their meant functions; inside controls over monetary reporting, irrespective of how nicely designed, have inherent limitations; there are inherent limitations to the effectiveness of any system of disclosure controls and procedures, together with the opportunity of human error and the circumvention or overriding of the controls and procedures; capability to efficiently execute strategic plans and keep profitability; improvement of aggressive or disruptive merchandise, providers or know-how; improvement and testing of recent merchandise or mannequin variants; acquisition danger; reliance on third-party producers; third-party distribution/supplier agreements; availability to the Firm of future financing; the Firm might not be capable to generate the required amount of money to service its debt, which can require the Firm to refinance its debt; the Firm’s substantial consolidated indebtedness may negatively impression the enterprise; the restrictive covenants within the Firm’s credit score services may impression the Firm’s enterprise and have an effect on its capability to pursue its enterprise methods; in December 2022, the Board made the choice to droop the cost of dividends given credit score settlement constraints and to assist the Firm’s concentrate on enhancing its liquidity and monetary place and the resumption of dividends just isn’t assured or assured; a major quantity of the Firm’s money could also be distributed, which can prohibit potential progress; the Firm depends on its subsidiaries for all money accessible for distributions; the Firm might not be capable to make principal funds on the Debentures; redemption by the Firm of the Debentures for Shares will lead to dilution to holders of Shares; Debentures could also be redeemed by the Firm previous to maturity; the Firm might not be capable to repurchase the Debentures upon a change of management as required by the belief indenture beneath which the Debentures have been issued (the “Indenture”); conversion of the Debentures following sure transactions may reduce or remove the worth of the conversion privilege related to the Debentures; future gross sales or the opportunity of future gross sales of a considerable variety of Shares or Debentures might impression the value of the Shares and/or the Debentures and will lead to dilution; funds to holders of the Debentures are subordinated in proper of cost to current and future Senior Indebtedness (as described beneath the Indenture) and can rely on the monetary well being of the Firm and its creditworthiness; if the Firm is required to put in writing down goodwill or different intangible belongings, its monetary situation and working outcomes can be negatively affected; and earnings and different tax danger ensuing from the complexity of the Firm’s companies and operations and earnings and different tax interpretations, laws and laws pertaining to the Firm’s actions being topic to continuous change.
Elements referring to the worldwide COVID-19 pandemic embody: the magnitude and period of the worldwide, nationwide and regional financial and social disruption being precipitated because of the pandemic; the impression of nationwide, regional and native governmental legal guidelines, laws and “shelter in place” or comparable orders referring to the pandemic which can materially adversely impression the Firm’s capability to proceed operations; partial or full closures of 1, extra or all the Firm’s services and work places or the discount of manufacturing charges (together with attributable to authorities mandates and to guard the well being and security of the Firm’s staff or because of staff being unable to return to work attributable to COVID-19 infections with respect to them or their members of the family or having to isolate or quarantine because of coming into contact with contaminated people); manufacturing charges could also be additional decreased because of the pandemic; ongoing and future provide delays and shortages of elements and elements, and delivery and freight delays, and disruption to or scarcity of labour provide because of the pandemic; the pandemic will doubtless adversely have an effect on operations of suppliers and clients, and cut back and delay, for an unknown interval, clients’ purchases of the Firm’s merchandise and the provision of elements and elements by suppliers; the anticipated restoration of the Firm’s markets sooner or later could also be delayed or enhance in demand could also be decrease than anticipated because of the persevering with results of the pandemic; the Firm’s capability to acquire entry to extra capital if required; and the Firm’s monetary efficiency and situation, obligations, money circulation and liquidity and its capability to take care of compliance with the covenants beneath its credit score services. There might be no assurance that the Firm will be capable to keep ample liquidity for an prolonged interval, receive long-term credit score preparations, or entry to extra capital or entry to authorities monetary assist or as to when manufacturing operations will return to earlier manufacturing charges. There’s additionally no assurance that governments will present continued or ample stimulus funding throughout or after the pandemic for public transit companies to buy transit autos or that public or non-public demand for the Firm’s autos will return to pre-pandemic ranges within the anticipated time frame. The Firm cautions that as a result of dynamic, fluid and extremely unpredictable nature of the pandemic and its impression on world and native economies, provide chains, companies and people, it’s inconceivable to foretell the severity of the impression on the Firm’s enterprise, working efficiency, monetary situation and talent to generate ample money circulation and keep ample liquidity and any materials adversarial results may very nicely be speedy, sudden and will proceed for an prolonged and unknown time frame.
Elements referring to the Firm’s monetary steering and targets and its “NFI Ahead” initiatives are described in its most not too long ago filed annual info kind and administration’s dialogue and evaluation, which can be found beneath the Firm’s profile on SEDAR.
Though the Firm has tried to determine essential elements that would trigger precise actions, occasions or outcomes to vary materially from these described in forward-looking statements, there could also be different elements that would trigger actions, occasions or outcomes to not be as anticipated, estimated or meant or to happen or be achieved in any respect. Particular reference is made to “Threat Elements” within the Firm’s Annual Data Kind for a dialogue of the elements which will have an effect on forward-looking statements and knowledge. Ought to a number of of those dangers or uncertainties materialize, or ought to underlying assumptions show incorrect, precise outcomes might range materially from these described in forward-looking statements and knowledge. The forward-looking statements and knowledge contained herein are made as of the date of this press launch (or as in any other case indicated) and, besides as required by regulation, the Firm doesn’t undertake to replace any forward-looking assertion or info, whether or not written or oral, that could be made every so often by the Firm or on its behalf. The Firm supplies no assurance that forward-looking statements and knowledge will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such statements. Accordingly, readers and traders shouldn’t place undue reliance on forward-looking statements and knowledge.