Coliseum Capital to buy more NFI shares in $150m private placement

• NFI plans to use the deal’s proceeds to repay outstanding indebtedness under the company’s existing credit facilities and for working capital and general corporate purposes
• Coliseum currently holds 12.4 percent of NFI’s issued and outstanding common shares
• Coliseum is a private investment firm based in Rowayton, Connecticut

NFI Group, a Winnipeg, Manitoba-based manufacturer of sustainable buses, coaches and infrastructure, has agreed to sell 24.4 million shares on a private placement basis to Coliseum Capital Management.

The shares, priced at $6.1567 (C$8.251) per unit, are expected to generate gross proceeds of $150 million (C$201 million). The deal is expected to close on or prior to 30 June 2023.

Coliseum currently holds 12.4 percent of NFI’s issued and outstanding common shares.

Under the agreement, Coliseum can nominate a member to NFI’s board of directors as long as Coliseum owns, controls or directs at least 10 percent of the outstanding shares. Adam Gray, co-founder and managing partner of Coliseum, has served on the board since March 2012.

NFI plans to use the deal’s proceeds to repay outstanding indebtedness under the company’s existing credit facilities and for working capital and general corporate purposes.

“We are pleased to support the company as the cornerstone investor in its recapitalization, providing NFI with the runway and flexibility required to allow Paul Soubry and his management team to focus fully upon advancing NFI’s mission and leadership position,” said Coliseum’s Gray in a statement. “As governments around the world make record investments into public transit to achieve emission reduction targets, NFI is well-positioned to leverage its deep transport experience, unparalleled service, technology innovation and customized manufacturing, to achieve financial outperformance.”

Coliseum Capital Management is a private investment firm based in Rowayton, Connecticut. Its focus is to invest with a long-term orientation in undervalued companies.

BMO Capital Markets is acting as financial advisor and private placement agent, Torys is acting as legal counsel to NFI and Norton Rose Fulbright Canada is acting as legal counsel to Coliseum in connection with the private placement.