New Flyer Announces September 2011 Cash Distribution
Winnipeg, Manitoba, Canada − September 15, 2011 − (TSX:NFI, TSX:NFI.UN) New Flyer Industries Inc. (“NFI”) declared today a dividend on the common shares of NFI (the “Shares”), including those Shares held separately and those Shares held in the form of an income deposit security (“IDS”), in the amount of C$0.007167 per Share, which will be payable on October 17, 2011, to holders of record at the close of business on September 30, 2011. The Shares that are held separately trade on the Toronto Stock Exchange (the “TSX”) under the symbol NFI and the Shares that are held in the form of an IDS trade on the TSX under the symbol NFI.UN.
The regular monthly cash interest payment of C$0.06452 per C$5.53 principal amount of subordinated notes (the “Subordinated Notes”) of New Flyer Industries Canada ULC (“NFI ULC”, and together with NFI, “New Flyer”) will also be paid on October 17, 2011 to holders of Subordinated Notes (including those held separately and those held in the form of an IDS) of record at the close of business on September 30, 2011. As a result, holders of record of IDSs will receive a total distribution of C$0.07167 per IDS, representing a cash dividend of C$0.007167 per Share and an interest payment of C$0.06452 per C$5.53 principal amount of Subordinated Notes for the period from September 1, 2011 to September 30, 2011.
As previously announced, NFI is proposing a 10:1 consolidation of Shares at the special meeting of Shareholders to be held on September 30, 2011. No fractional Shares will be issued on the consolidation and, in the event that a Shareholder would otherwise be entitled to receive a fractional Share upon the consolidation, such fraction will be rounded down to the nearest whole number. If the Shareholders pass the resolution to consolidate the Shares as proposed, management expects to effect the consolidation as soon as practicable after the meeting and prior to the September monthly dividend payment date of October 17.
As such, if the consolidation is implemented, the September dividend per Share of C$0.007167 per Share will be adjusted to C$0.07167 per Share to reflect the 10:1 consolidation, and the ratio of Shares and principal amount of Subordinated Notes representing an IDS will also be adjusted such that, following the Share consolidation, each IDS will represent: (i) one Share; and (ii) C$55.30 principal amount of Subordinated Notes. Accordingly, subject to the elimination of fractional Shares on the consolidation, distributions to the holders of Shares, Subordinated Notes and IDSs will be unaffected by the Share consolidation.
The dividends on the Shares (including those Shares forming part of the IDSs) 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.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. The Company’s three manufacturing facilities – in Winnipeg, MB; St. Cloud, MN; and Crookston, MN – are all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company currently operates a parts fabrication facility in Elkhart, IN and three parts distribution centers in Winnipeg, MB; Erlanger, KY; and Fresno, CA. A fourth PDC is expected to open in Ontario in 2011.
With a skilled workforce of over 2,000 employees, New Flyer is a technology leader, 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 diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and service network. Further information is available on New Flyer’s web site at www.www.newflyer.com.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of New Flyer 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, New Flyer disclaims 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