WINNIPEG - Bus maker New Flyer Industries Inc. (TSX:NFI) said Tuesday it has signed a deal to raise US$65 million in convertible unsecured subordinated debentures that will be used to repay other higher interest debt.
Trading in New Flyer shares was halted pending the announcement.
Under the financing deal, the company said it will issue US$65 million in convertible unsecured subordinated debentures with an annual interest rate of 6.25 per cent, payable semi-annually.
The debentures will be convertible at the holder's option into shares of the company at a conversion price of US$10 per common share and mature on June 30, 2017.
The money raised will be used to redeem C$60 million in 14 per cent subordinated notes, including those held in the form of an income deposit security.
Following the redemption of the subordinated notes, the IDSs will be de-listed from the Toronto Stock Exchange and the common shares forming part of an IDS will start trading separately.
New Flyer manufactures heavy-duty transit buses in Canada and the United States.
Shares in the company were down two cents at C$7.13 late Tuesday on the Toronto Stock Exchange.