NFI Group Inc. Announces Amendment to Double Size of Normal Course Issuer Bid

NFI Group Inc. (“NFI”) recently announced that the Toronto Stock Exchange (“TSX”) has accepted a notice filed by NFI of its intention to amend its existing normal course issuer bid (“NCIB”) for its common shares. The maximum number of shares which may be purchased under the NCIB will increase from 2,774,733 Shares, being 5% of the public float, to 5,549,465 Shares, which equals 10 percent of the public float, in each case as of the date of commencement of the NCIB. No other terms of the NCIB have been amended. NFI believes that the Shares are currently trading in a price range that does not fully reflect their value and that the acquisition of Shares may represent an attractive and desirable use of its funds.

NFI has been actively purchasing shares under the existing NCIB since it was commenced. As of the close of business on January 16, 2019, 2,153,275 shares (approximately $89,131,159 CAD)) have been purchased. Pursuant to the amended NCIB, NFI can purchase up to 3,396,191 Shares (taking into account the prior purchases).

Purchases will terminate on June 13, 2019, or earlier should NFI complete its purchases prior to such date. All purchases will be made through the facilities of the TSX and any alternative Canadian trading systems and all Shares acquired under the NCIB will be cancelled.  Purchases will be subject to compliance with applicable Canadian securities laws. NFI is not required to purchase any or a particular number of shares under the NCIB.

Management believes NFI’s strong free cash flow generation, low leverage and revolving credit facility positions it well to purchase shares under the NCIB while permitting it to maintain its current dividend rate and also consider strategic initiatives to grow and diversify the business.

This press release originally appeared on NFI Group’s website. You can view it here.