NFI Group Announces Amendments to its Credit Facilities

All monetary amounts in this press release are in US dollars unless otherwise noted.

NFI has amended the Company's existing $1.25 billion senior revolving credit facility (the "Revolver") and its £50 million revolving UK credit facility (the "UK Facility").

The amended facilities provide NFI with relaxed covenants as it recovers from the impacts of the COVID-19 pandemic.

In addition to amending the facilities, NFI cancelled the unused $250 million unsecured credit facility it entered into in April 2020 (the "Sidecar"). The Sidecar was intended to provide additional liquidity, if required, which the Company believes it no longer requires.

Management believes the Company's cash position, anticipated future revenues and the liquidity from credit facilities are sufficient to support current operations, dividends and strategic initiatives.

WINNIPEG, MB, Dec. 23, 2020 /PRNewswire/ - (TSX: NFI) NFI Group Inc. ("NFI" or the "Company") today announced it has amended the Revolver and the UK Facility (together, the "Facilities"), providing meaningful covenant relief and additional flexibility, and cancelled the $250 million Sidecar.  

"NFI is moving forward from the challenging impacts of COVID-19 in a stronger position following the amendments to our credit facilities, which were made possible by the continued confidence and support of our banking partners," said Pipasu Soni, NFI's Executive Vice President, Finance and Chief Financial Officer. "The need to amend our credit facilities was primarily a calculation challenge driven by our trailing financial results that reflect the effect COVID-19 has had on our markets and customers. We anticipate stronger cash flow generation and liquidity in fiscal years 2021 and 2022 as we execute upon our strategic plan and lead the ongoing transition to a zero-emission future."

Under the terms of the amended Facilities, the Company's banking partners have relaxed the total leverage and interest coverage ratios for 2021 and 2022. During 2021, the Company has received a waiver on previous total leverage covenants and will instead need to comply with a total leverage ratio that is based on a conservative downside financial projection for the Company's 2021 fiscal year. During the waiver period NFI will have to comply with a $50 million minimum liquidity covenant and a net debt to capitalization covenant of 70%. Through the amendments, NFI has provided the lenders security on certain of its assets, including a general security agreement on NFI's personal property, but excluding security on real property, until April 3, 2023.

The terms of the amended Facilities do not restrict the payment of dividends, provided the Company is in compliance with the financial covenants and the dividend payments remain at the current level. Copies of the amendments to the Revolver and the UK Facility, which will include additional details regarding the covenants and other terms and conditions, will be posted on SEDAR in due course.

The Bank of Nova Scotia is the Administrative Agent for the Revolver and The Bank of Nova Scotia, BMO Capital Markets, and National Bank Financial Inc. are the Joint Bookrunners. The Revolver syndicate also includes The Canadian Imperial Bank of Commerce; Bank of America, Canada Branch; Wells Fargo Bank, N.A., Canadian Branch; The Toronto Dominion Bank; HSBC Bank Canada; MUFG Bank Ltd., Canada Branch; Export Development Canada and ICICI Bank Canada.

For the UK Facility, HSBC UK acted as Administrative Agent and HSBC UK and the Bank of America, Canada Branch were the two co-lenders and Mandated Lead Arrangers.

NFI will be holding a Virtual Investor Day on January 11th, 2021. During the event, NFI's Senior Leadership team and Board Directors will provide  updates on the Company's business and market conditions, strategic and transformational initiatives, NFI's industry leading zero-emission vehicle program, new products, Environmental, Social and Governance performance, and financial outlook.

To confirm your attendance for the event please RSVP by emailing investor@nfigroup.com. You may also visit nfigroup.com/investor-day-2021/ for more details, relevant information, and registration instructions.

About NFI Group

Leveraging 450 years of combined experience, NFI is leading the battery-electric transition of mass mobility around the world. With zero-emission buses and coaches, infrastructure, and technology, NFI meets today's urban demands for scalable smart mobility solutions. Together, NFI is enabling more livable cities through connected, clean, and sustainable transportation.

NFI is a leading independent global bus manufacturer providing a comprehensive suite of mass transportation solutions in ten countries under brands: New Flyer® (heavy-duty transit buses), Alexander Dennis Limited (single and double-deck buses), Plaxton (motor coaches), MCI® (motor coaches), ARBOC® (low-floor cutaway and medium-duty buses), and NFI Parts™.  NFI vehicles incorporate the widest range of drive systems available including: clean diesel, natural gas, diesel-electric hybrid, and zero-emission electric (trolley, battery, and fuel cell).  In total, NFI now supports over 105,000 buses and coaches currently in service around the world.

NFI common shares are traded on the Toronto Stock Exchange under the symbol NFI. Further information is available at www.nfigroup.com, www.newflyer.com, www.mcicoach.com, www.arbocsv.com, www.nfi.parts, www.alexander-dennis.com, and www.carfaircomposites.com.