NFI raises C$350M in notes to advance deleveraging push

What's the deal? Bus and motorcoach maker NFI GroupDealroom has a profile for this one. Try Dealroom → has agreed to issue C$350 million in senior unsecured notes due 2033, priced at par with an interest rate of 6.625% per year. The Winnipeg-based company (TSX: NFI) also amended and extended its existing senior revolving credit facilities. The offering is expected to close on July 21, 2026.

Why now? The move is part of a broader refinancing. NFI will use net proceeds to repay debt, including part of what is outstanding under its First Lien Senior Credit Facility and other existing indebtedness. It plans to redraw on that facility in January 2027 to repay the principal on its existing convertible debentures.

What's the endgame? The amended credit facility now carries more favourable pricing, larger permitted debt baskets, and matures on July 14, 2030, with an option to extend further.

"The new Notes, along with the amended credit facilities, increase our overall financial flexibility and support the continued execution of our deleveraging strategy," said chief financial officer Brian Dewsnup. He called the unsecured financing "an important milestone in advancing those objectives."

The details: The notes mature on July 21, 2033, with interest paid twice a year starting January 21, 2027. NFI can redeem them at 103.313% from July 21, 2029, at 101.656% from July 21, 2030, and at par from July 21, 2031. The notes will be guaranteed by NFI subsidiaries that back its First Lien Senior Credit Facility and its senior secured second lien notes due 2030.

The signal: The C$350 million raise, coming close on the heels of NFI's recent financing activity, points to a company steadily reworking its capital structure to lower leverage while locking in longer maturities to 2033.

Read more: Yahoo Finance

Image credit: Dai Lygad