NFI Group, the largest bus and motor coach manufacturer and parts distributor in North America, entered into a revolving credit facility with a total borrowing limit of $1 billion, which includes a $100 million letter of credit facility.
The credit facility has a five-year term and will mature on October 25, 2023. It also provides an accordion feature which allows the company to obtain additional funding of up to $250 million, subject to customary conditions. The credit facility refinances and replaces the existing secured credit facility, which had a total borrowing limit of $825 million.
Loans under the credit facility bear interest at a rate equal to LIBOR or a U.S. base rate for loans denominated in U.S. dollars and a Canadian prime rate or bankers’ acceptance rate for loans denominated in Canadian dollars, plus an applicable margin to those rates.
The Bank of Nova Scotia is the administrative agent under the credit facility, and Bank of Nova Scotia, BMO Capital Markets and National Bank Financial are the co-lead arrangers. The facility has been syndicated, with the lenders comprised of the three lead banks and eight other financial institutions, all of whom were parties to the previous credit facility.
“We are very pleased with our new credit facility and the strong and continued support received from our banking partners,” said Paul Soubry, NFI’s president and chief executive officer.
With nearly 6,000 team members, operating from 31 facilities across Canada and the United States, NFI is North America’s largest bus manufacturer.