NFI Group Inc., a leading independent bus and coach manufacturer and a leader in electric mass mobility solutions, announced that it has finalized agreements for the previously announced financial support package of approximately $1871 million with the Manitoba Development Corporation, an entity that provides financial services and financial instruments on behalf of the Province of Manitoba, and Export Development Canada (“EDC”), Canada’s export credit agency.
The financial support package includes:
a CAD$50 million (US$37 million) debt facility (the “Manitoba Facility”) from the Manitoba Development Corporation to support investments in working capital and general corporate purposes. The Manitoba Facility has a one-year term, with options to extend for up to an additional 24 months, subject to approval by NFI and the Government of Manitoba; and
a $50 million debt facility (the “EDC Facility”) to support supply chain financing and an up to $100 million surety reinsurance support arrangement (the “Bonding Support”) for NFI’s surety and performance bonding requirements for new contracts, both provided by EDC. The EDC Facility has a one-year term with options to extend for up to an additional 24 months, subject to approval by NFI and EDC. The Bonding Support is for a one-year term for each new contract, subject to annual renewals.
Interest payments under the facilities are based on a base rate plus applicable margin structure. While the Manitoba Facility is in place, NFI must maintain its headquarters and senior management in Manitoba, and, while the EDC Facility and Manitoba Facility are in place, NFI cannot pay a dividend.
In addition to the agreements finalized today, NFI continues to advance discussions with its senior secured banking partners on developing a new longer-term credit agreements to replace its current $1.00 billion revolving credit facility and £40 million UK facility. NFI anticipates that these new agreements will be in place before June 30, 2023.
NFI previously announced the financial support package that was finalized today on December 23, 2022, and held an announcement event with the Government of Manitoba at NFI’s New Product Development facility in Winnipeg, Manitoba. A replay of the event can be viewed at http://news.gov.mb.ca or http://youtube.com/ManitobaGovernment.
NFI has over 105,000 buses and coaches in service and is a leader in zero-emission mobility, with electric vehicles operating (or on order) in more than 110 cities in six countries. NFI offers the widest range of zero-emission battery and fuel cell-electric buses and coaches, and its vehicles have completed over 85 million EV service miles. NFI employs over 7,500 people around the world.
