NFI Group priced C$350M in 6.625% notes due 2033 and extended its credit lines to 2030. Proceeds will repay debt and fund a January 2027 convertible debenture retirement.
NFI Group priced C$350 million in senior unsecured notes due 2033 and amended its existing credit facilities, the Winnipeg-based bus and motorcoach manufacturer said Tuesday.
The notes carry a 6.625% coupon, payable semi-annually, and were priced at par. Proceeds will repay a portion of the company's first-lien credit facility and other existing debt. NFI plans to redraw under the credit line in January 2027 to retire its outstanding convertible debentures.
The amended credit facility, now maturing July 14, 2030, offers more favorable pricing and larger permitted debt baskets. An uncommitted option allows a further extension.
"The new Notes, along with the amended credit facilities, increase our overall financial flexibility and support the continued execution of our deleveraging strategy," CFO Brian Dewsnup said in the release.
The notes are guaranteed by NFI's subsidiaries that back the first-lien facility and the company's secured second-lien notes due 2030. NFI can redeem the notes at 103.313% of par from July 21, 2029, stepping down to par from July 21, 2031.
National Bank of Canada Capital Markets, RBC Capital Markets and TD Securities led the underwriting syndicate as joint active bookrunners. BMO Capital Markets, CIBC Capital Markets and Scotiabank served as passive bookrunners, with BofA Securities, ATB Cormark Capital Markets, Canaccord Genuity and Stifel as co-managers.
National Bank of Canada is administrative agent on the credit facility. Bank of Nova Scotia, BMO, CIBC and TD are co-lead arrangers. The lender syndicate includes affiliates of the five co-lead arrangers and five other financial institutions.
Closing is expected July 21.
NFI's Alpha Score sits at 51 out of 100, a Mixed label, in the Industrials sector. The stock page is at RBC stock page.
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