All monetary amounts in this press release are in US dollars unless otherwise noted.
- NFI has obtained covenant relief on the Company's existing $1.25 billion unsecured senior credit facility and entered into a new, additional $250 million unsecured, one-year liquidity facility.
- Although NFI believes its liquidity under its existing facility is sufficient to support current operations, the expanded credit capacity and relaxed covenants provide additional liquidity and flexibility. The Company now has total liquidity of over $475 million to navigate through the COVID-19 pandemic, if needed.
WINNIPEG, April 23, 2020 /PRNewswire/ - (TSX: NFI) NFI Group Inc. ("NFI" or the "Company") today announced it has amended its existing $1.25 billion unsecured revolving senior credit facility (the "Revolver"), providing meaningful covenant relief, and simultaneously entered into a new $250 million unsecured, one-year facility (the "New Facility"). The New Facility can be used for general corporate purposes, thereby providing additional liquidity and flexibility should it be required.
With respect to covenant relief, the Company's banking partners have waived compliance with the total leverage ratio and interest coverage ratio covenants under the Revolver and the New Facility for the fiscal periods up to September 28, 2020. As of that date, compliance with relaxed covenants will resume for the term of the New Facility.
The terms of the credit facilities do not restrict the payment of dividends, provided the Company is in compliance with the covenants under the facilities and the dividend payments remain at the current level. Copies of the New Facility and the amendment to the Revolver, which include additional details regarding the covenants and other terms and conditions, will be posted on SEDAR in due course.
The Bank of Nova Scotia is the Administrative Agent for the New Facility and The Bank of Nova Scotia, BMO Capital Markets, National Bank Financial Inc., The Canadian Imperial Bank of Commerce and Export Development Canada are the Joint Bookrunners. The New Facility has been syndicated, with the lenders comprised of the five lead banks and six other financial institutions, all of which are lenders under the Revolver.
"We are very pleased to announce covenant relief and our new credit facility. While we believe credit capacity under our existing facility, which is currently over $225 milion, is sufficient to fund our business, the covenant relief and additional financial liquidity provided by this new facility offers NFI significant flexibility to withstand the impacts of the COVID-19 pandemic," said Pipasu Soni, Executive Vice President, Finance and Chief Financial Officer, NFI Group. "Our banking partners have been tremendous supporters of NFI and displayed their confidence in our business, our management team and our long-term strategy throughout this process. We applaud them for how quickly and professionally they advanced these initiatives during a very challenging period caused by COVID-19."
About NFI Group
With more than 9,000 team members operating from 50 facilities across ten countries, NFI is a leading independent global bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer® (heavy-duty transit buses), Alexander Dennis Limited (single and double-deck buses), Plaxton (motor coaches), MCI® (motor coaches), ARBOC® (low-floor cutaway and medium-duty buses), and NFI Parts™. NFI vehicles incorporate the widest range of drive systems available including: clean diesel, natural gas, diesel-electric hybrid, and zero-emission electric (trolley, battery, and fuel cell). In total, NFI now supports over 105,000 buses and coaches currently in service around the world.
NFI common shares are traded on the Toronto Stock Exchange under the symbol NFI. Further information is available at www.nfigroup.com, www.newflyer.com, www.mcicoach.com, www.arbocsv.com, www.nfi.parts, www.alexander-dennis.com, and www.carfaircomposites.com.
Certain statements in this press release are "forward looking statements", which reflect the expectations of management regarding the Company's future growth, liquidity, results of operations, performance and business prospects and opportunities. The words "believes", "anticipates", "plans", "expects", "intends", "projects", "forecasts", "estimates", "may", "will" and similar expressions are intended to identify forward looking statements. These forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved.
Actual results may differ materially and adversely from management expectations as projected in such forward-looking statements for a variety of reasons, including, but not limited to, the magnitude and length of the global, national and regional economic and social disruption being caused as a result of the global COVID-19 pandemic; the impact of national, regional and local governmental laws, regulations and "shelter in place" or similar orders relating to the COVID-19 pandemic which materially adversely impact the Company's ability to continue operations; additional partial or complete closures of one, more or all of the Company's facilities and work locations (including to protect the health and safety of the Company's employees) or the extension of such closures as a result of the COVID-19 pandemic; continuing and worsening supply delays and shortages of parts and components and disruption to labour supply as a result of the COVID-19 pandemic; the COVID-19 pandemic will likely adversely affect operations of customers as a result of shutdowns and/or disruptions to their operations and the services provided to their customers and end users; the Company's ability to obtain access to additional capital if required; the Company's financial performance and condition, obligations, cash flow and liquidity and its ability to maintain compliance with the covenants under its credit facilities, which may also negatively impact the ability of the Company to fund dividends; and the other risks and uncertainties detailed in the disclosure documents filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. These above risks relating to the impact of the COVID-19 pandemic may materially adversely impact the Company's business, operating performance and financial condition, including as a result of reduction to the Company's cashflow, liquidity and its ability to maintain compliance with covenants under its credit facilities. There can be no assurance that the Company will be able to maintain sufficient liquidity for an extended period, obtain future covenant relief under its credit facilities or access to additional capital or access to government financial support or as to when production operations will commence.
The Company cautions that due to the dynamic, fluid and highly unpredictable nature of the COVID-19 pandemic and its impact on global and local economies, businesses and individuals, it is impossible to predict the severity of the impact on the Company's business, operating performance and financial condition and any material adverse effects could very well be rapid, unexpected and may continue for an extended and unknown period of time. The extent of such impact will depend on future developments, which are unpredictable, including new information which may emerge concerning the spread and severity of COVID-19 and actions taken by governments and health organizations around the world to address its impact, among others.
Due to the potential impact of these and other factors, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE NFI Group Inc.