New Flyer Industries Inc.

August 11, 2008 16:01 ET

New Flyer Industries Inc. and New Flyer Industries Canada ULC Announce a $102.4 Million Bought Deal Offering of Income Deposit Securities

WINNIPEG, MANITOBA--(Marketwire - Aug. 11, 2008) -


New Flyer Industries Inc. (TSX:NFI.UN) ("NFI") and New Flyer Industries Canada ULC ("NFI ULC", together with NFI, the "Issuer") are pleased to announce today that they have entered into an agreement with a syndicate of underwriters to sell 9,143,100 Income Deposit Securities ("IDSs") at $11.20 each to raise gross proceeds of approximately C$102.4 million on a bought deal basis. The underwriting syndicate is led by CIBC World Markets Inc. and BMO Capital Markets. The offering is expected to close on or about September 3, 2008, and is subject to regulatory approvals. Concurrent with and as a condition to the offering, NFI ULC will also sell, by way of private placement to exempt purchasers, up to $5.1 million aggregate principal amount of 14% subordinated notes of NFI ULC separately from the IDSs.

Net proceeds from the offering of IDSs will be used by the Issuer to purchase for cancellation all of the Class B and Class C common shares of NFI's subsidiary, New Flyer Holdings, Inc., held by New Flyer Transit LP. This will result, upon the completion of the offering, in NFI holding an approximate 95% economic and voting interest in New Flyer Holdings, Inc., with the remaining interest being held indirectly by management. The net proceeds from the concurrent offering of separate subordinated notes will be used for general corporate purposes.

New Flyer's IDSs are listed on the Toronto Stock Exchange under the symbol "NFI.UN".

The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or the solicitation of any offer to buy securities in the United States, or in any jurisdiction in which the offer, solicitation or sale would be unlawful.

New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada and a leading provider of aftermarket services. New Flyer has the broadest range of products in the heavy-duty transit bus industry and provides its products and services to the majority of the largest transit authorities in North America.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of NFI and NFI ULC that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in the Issurer's publicly-filed documents with the Canadian securities regulatory authorities. Due to the potential impact of these factors, NFI and NFI ULC disclaim 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.

Contact Information

  • New Flyer Industries Inc.
    Glenn Asham
    Chief Financial Officer
    (204) 224-1251