Business
NFI Announces the Launch of Offering of $600 million Second Lien Notes
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES WINNI...
About this update from Nfi Group Inc.
[{"type":"text","content":"NFI Announces the Launch of Offering of $600 million Second Lien Notes\n\n\n\n\n NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES\n \n\n\n WINNIPEG, Manitoba, May 28, 2025 (GLOBE NEWSWIRE) --\n \n (TSX: NFI, OTC: NFYEF, TSX: NFI.DB)\n \n NFI Group Inc. (“NFI” or the “Company”) a leader in propulsion-agnostic bus and coach mobility solutions, today announced that its subsidiary, New Flyer Holdings, Inc. (the “Issuer”), intends to offer, subject to market conditions, $600 million in aggregate principal amount of second lien senior secured notes (the “Notes”) in a private offering.\n \n\n NFI intends to use the net proceeds from the offering of the Notes to repay certain indebtedness under the Company’s existing credit facilities, including a portion of the amounts outstanding under the First Lien Senior Credit Facility (defined below), its existing $180 million second lien credit facility and certain other existing indebtedness, and to pay certain related fees and expenses.\n \n\n The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior second lien basis by NFI and subsidiaries of NFI that guarantee the Company’s First Lien Senior Credit Facility. The interest rate and other terms of the Notes are expected to be determined based on prevailing market conditions.\n \n\n Upon the completion of the Notes offering, the Company’s existing first lien senior credit facility (the “First Lien Senior Credit Facility”) will be automatically extended to May 7, 2029, and the maximum commitments under it will be reduced to $700 million, which includes $300 million in letter of credit availability. The First Lien Senior Credit Facility will be available to be drawn on a revolving basis for general corporate purposes. The minimum liquidity covenant of $50 million under the First Lien Senior Credit Facility will no longer apply and certain additional enhancements will become operative.\n \n\n\n The offer and sale of the Notes will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state or the securities laws of any other jurisdiction. The Notes may not be offered or sold in the United States absen...