Press Releases

New Flyer Announces Commitments to Refinance its Credit Facility

WINNIPEG, March 18, 2009

New Flyer Industries Inc. (TSX:NFI.UN) (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in Canada and the United States, is pleased to announce that it has secured commitments from a syndicate of lenders in excess of US$180 million to refinance New Flyer’s existing US$180 million senior credit facility maturing in August 2009. The new senior credit facility is expected to be for a three-year term and comprised of a US$90 million term loan, a US$50 million revolver and a US$40 million letter of credit facility. The parties are currently in the process of settling the definitive documentation with respect to new credit facility and management expects the new facility to be on similar terms relative to the current senior credit agreement. The syndicate of lenders includes four members of the existing syndication including The Bank of Nova Scotia as Lead Arranger, Sole Book Runner and Administrative Agent, Bank of Montreal, as Syndication Agent, Canadian Imperial Bank of Commerce and Toronto Dominion Bank. Export Development Canada has also provided a financing commitment and is expected to become a member of New Flyer’s senior credit syndication. In light of the current challenges faced by many companies seeking to access the tightening credit markets, management believes this refinancing is a testament to the strength of the Company’s current and projected financial performance and the positive growth outlook for the business.

About New Flyer

New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. The Company’s three facilities – in Winnipeg, MB, St. Cloud, MN and Crookston, MN – are all ISO 9001, ISO 14001 and OHSAS 18001 certified. With a skilled workforce of approximately 2,400 employees, New Flyer is a technology leader in the heavy-duty transit market, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG and electric trolley, as well as energy-efficient gasoline-electric and diesel-electric hybrid vehicles. All of New Flyer’s products are supported by an industry-leading, comprehensive parts and service network. The IDSs are listed on the Toronto Stock Exchange under the symbol NFI.UN.

Forward-Looking Statements

Certain statements in this press release are “forward looking statements”, which reflect the expectations of management regarding the Company’s future growth, results of operations, performance and business prospects and opportunities. The words “believes”, “anticipates”, “plans”, “expects”, “intends”, “projects”, “estimates” and similar expressions are intended to identify forward looking statements. These forward looking statements reflect management’s current expectations regarding future events, including successful completion of the refinancing of the Company’s credit facility, 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, results or events, and will not necessarily be accurate indications of whether or not or the times at or by which such events will occur or results will be achieved. A number of factors could cause actual results or future events to differ materially from those discussed in the forward-looking statements. Such differences may be caused by factors which include, but are not limited to, the Company’s ability to finalize documentation with respect to the new credit facility on terms acceptable to it or at all, volatility in the credit markets, competition in the heavy-duty transit bus industry, availability of funding to the Company’s customers at current levels or at all, material losses and costs may be incurred as a result of product warranty issues, material losses and costs may be incurred as a result of product liability claims, changes in Canadian or United States tax legislation, the Company’s success depends on a limited number of key executives who the Company may not be able to adequately replace in the event that they leave the Company, the absence of fixed term customer contracts and the termination of contracts by customers for convenience, the current “Buy-America” legislation may change and/or become more onerous, production delays may result in liquidated damages under the Company’s contracts with its customers, currency fluctuations could adversely affect the Company’s financial results or competitive position in the industry, the Company may not be able to maintain performance bonds or letters of credit required by its existing contracts or obtain performance bonds and letters of credit required for new contracts, third party debt service obligations may have important consequences to the Company, the covenants contained in the senior credit facility and subordinated note indenture of New Flyer Industries Canada ULC could impact the ability of the Company to fund distributions and take certain other actions, interest rates could change substantially and materially impact the Company’s profitability, the dependence on limited sources of supply, the possibility of fluctuations in the market prices of the pension plan investments and discount rates used in the actuarial calculations will impact pension expense and funding requirements, the Company’s profitability and performance can be adversely affected by increases in raw material and component costs and the availability of labour could have an impact on production levels.  The Company cautions that this list of factors is not exhaustive.  These factors and other risks and uncertainties are discussed in the Company’s materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com.

Although the forward looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements, and the differences may be material. These forward looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable securities laws.

For further information:
Glenn Asham
Chief Financial Officer
Tel: (204) 224-1251
E-mail: [email protected]