NFI greenshoe lifts 5% convertibles due 2027 to C$288 million

By Rebecca Melvin

Concord, N.H., Dec. 14 – The underwriters of NFI Group Inc.’s recently priced 5% convertible senior debentures due Jan. 15, 2027 exercised their C$38 million over-allotment option, bringing the total deal size to C$288 million, according to a company news release.

NFI Group priced the initial C$250 million of debentures on Nov. 15. As part of the deal, underwriters also agreed to purchase 6.11 million common shares of NFI Group at a price of C$24.55 per share, raising total proceeds for the company to approximately C$400 million.

BMO Capital Markets, CIBC Capital Markets, National Bank Financial and Scotiabank are underwriters of the issue.

The fixed conversion premium had been 35%.

The issue comes with three years of call protection and there is a 125% hurdle.

The securities are putable upon a fundamental change. And they can be settled after a conversion in either cash or shares. Subject to certain conditions, the issuer can opt to repay the principal at maturity in shares.

There is dividend protection of C$0.2125 initially as a quarterly dividend threshold.

The underwriters also had 30 days after the close to purchase an additional 916,500 common shares.

Proceeds of the over-allotment option will be used to further reduce the company’s senior credit facilities’ balance.

NFI Group is a bus manufacturer based in Winnipeg, Man.

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