Daily News: June 24, 2013

BONS, BOM Arrange Financing to Support New Flyer Acquisition

New Flyer Industries announced the acquisition of North American Bus Industries from an affiliate of Cerberus Capital Management for cash consideration of approximately $80 million, virtually all for the satisfaction of affiliate debt.

New Flyer said transaction financing consists of approximately C$65 million from the final tranche of the previously announced Marcopolo
S.A. strategic equity investment in New Flyer with the balance drawn from New Flyer’s newly-amended senior credit facility

Concurrent with the acquisition of NABI, the company completed the amendment and extension of its senior secured credit facility to April 24, 2017 while increasing the total amount of the facilities to C$257 million, an increase of C$45 million. The Bank of Nova Scotia and Bank of Montreal acted as co-lead arrangers and joint bookrunners on the senior credit facility extension.

The borrowing limit of the revolving facility has been increased to C$115 million from C$90 million to support working capital fluctuations. The borrowing limit of the term facility has been increased to C$142 million from C$122 million. In addition, certain financial covenants and definitions have been adjusted to reflect the acquisition of NABI. The credit agreement also maintains an accordion feature of 75 million for future investment or acquisition opportunities.

BMO Capital Markets is acting as exclusive financial advisor to New Flyer in connection with the acquisition of NABI. Torys is acting as primary legal counsel to New Flyer in connection with the transaction.