NFI Group, a bus and coach manufacturer completed the amendments to the company’s existing senior revolving credit facility and its revolving UK credit facility.
Details are as follows:
- Amendments provide relief from previous key financial covenants (Total Leverage Ratio (TLR), Minimum Adjusted EBITDA2 and Interest Coverage Ratio for the fourth quarter of 2022 and the first two quarters of 2023 – the period ending June 30, 2023.
- During the waiver period, the company is subject to a total net debt to capitalization ratio, starting in January 2023, and a minimum Adjusted EBITDA2 covenant starting in March 2023. Additional details provided below.
- Under the amendments, NFI has lowered the revolver capacity from $1.25 billion to $1 billion, and the UK Facility from £50 million to £40 million. The revolver now has a $25 million minimum liquidity requirement, which was previously $250 million.
- The revolver matures on Aug. 2, 2024, and, through the amendments, the UK facility now matures on June 30, 2023 (was previously May 1, 2023).
- NFI and its banking syndicate partners are now focused on developing new longer-term credit arrangements, and NFI will be seeking agreements that provide appropriate capacity and covenants matched to the company’s anticipated financial performance and recovery. The company is targeting completion of these changes prior to the end of the waiver period.
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As previously reported, NFI expects it will finalize agreements in January 2023 for the Government of Manitoba’s proposed CAD$50 million debt facility, to support investments in working capital and general corporate purposes, and Export Development Canada’s (“EDC”) credit facilities of up to $150 million to support supply chain financing ($50 million) and surety and performance bonding requirements for new contracts (up to $100 million).
