New Flyer Announces October 2010 Cash Distribution
Winnipeg, Manitoba, Canada − October 20, 2010 − (TSX:NFI.UN) New Flyer Industries Inc. (“NFI”) and New Flyer Industries Canada ULC (“NFI ULC”) (together, “New Flyer”) today announced that the sixty-second consecutive monthly cash distribution on the income deposit security (“IDS”) of New Flyer in the amount of $0.0975 will be payable on November 15, 2010, to holders of record of IDSs at the close of business on October 29, 2010. The IDSs trade on the Toronto Stock Exchange under the symbol NFI.UN.
Each IDS consists of one common share of NFI (a “common share”) and C$5.53 principal amount of 14% subordinated notes of NFI ULC (the “subordinated notes”), an indirect subsidiary of NFI. The total distribution of C$0.0975 per IDS reflects a cash dividend of C$0.03298 per common share and an interest payment of C$0.06452 per C$5.53 principal amount of subordinated notes for the period from October 1, 2010 to October 31, 2010.
All dividends paid by NFI to Canadian residents on the common shares after December 31, 2005 are designated as “eligible dividends” for purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation. In addition, unless stated otherwise, all dividends paid by NFI hereafter on the common shares are designated as “eligible dividends” for the purpose of such rules.
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.
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, the covenants contained in NFI ULC’s senior credit facility and subordinated note indenture and the other risks and uncertainties detailed in the disclosure documents filed 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.
For further information, please contact:
New Flyer Industries Inc.
Glenn Asham, Chief Financial Officer