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NFI Group Announces Entry Into New Credit Facility
NFI Group Announces Entry Into New Credit Facility Canada NewsWire WINNIPEG, Oct...
About this update from Nfi Group Inc.
[{"type":"text","content":"\n\n\n\n\nNFI Group Announces Entry Into New Credit Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nWINNIPEG, Oct. 25, 2018\n\n\n\nWINNIPEG, Oct. 25, 2018 /CNW/ - (TSX: NFI) NFI Group Inc. (\"NFI\") the largest bus and motor coach manufacturer and parts distributor in North America, today announced that it and certain of its subsidiaries (collectively, the \"Company\") has entered into a revolving credit facility (the \"Credit Facility\") with a total borrowing limit of $1.0 billion, which includes a $100 million letter of credit facility.  The Credit Facility is unsecured, has a 5-year term and will mature on October 25, 2023.  In addition, the Credit Facility 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 Company's existing secured credit facility, which had a total borrowing limit of $825 million.\n\n \n \n\n \nLoans 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.\nThere are certain financial covenants under the Credit Facility that must be maintained. Specifically, the Company must maintain an interest coverage ratio greater than 3.0 to 1 and a total leverage ratio (\"TLR\") of less than 3.75 to 1.  NFI desires to maintain a TLR of around 2.0 to 2.5.  Within NFI's desired range of TLR, the cost of borrowing is expected to decrease approximately 30 basis points compared to the previous secured credit facility.\nThe Bank of Nova Scotia is the Administrative Agent under the Credit Facility and Bank of Nova Scotia, BMO Capital Markets and National Bank Financial Inc. are the Co-Lead Arrangers. The Credit 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 ...