BARRIE, Ontario — Student Transportation Inc. (“STI”) announced today that it has closed its offering of 10,950,000 common shares of STI (the “Common Shares”) at a price of C$6.85 per Common Share for total gross proceeds of C$75 million. The offering was underwritten by a syndicate of underwriters led by BMO Nesbitt Burns Inc. and including Raymond James Ltd., National Bank Financial Inc., Scotia Capital Inc., Stifel Nicolaus Canada, Inc. and CIBC World Markets Inc.
The net proceeds of the offering will be used to repay debt and for general corporate purposes.
“We are very pleased with the results of the recent equity offering being fully subscribed. This was our first common share offering since June 2009,” said Denis J. Gallagher, Chairman and Chief Executive Officer of STI. “We will use 100% of the net proceeds to reduce our senior credit facility, which we continue to use for growth, and for general corporate purposes. We are pleased that a portion of the offering was bought by some of our largest institutional shareholders and for our first time, a portion was purchased by new U.S. shareholders. Shareholders continue to support our simple business model that grows and gives back to its employees, customers, communities and shareholders.”
The Common Shares were offered by way of short form prospectus in all of the provinces and territories in Canada and were offered in the United States pursuant to a registration statement filed under the Canada/U.S. multi-jurisdictional disclosure system. A registration statement relating to these securities was filed with the United States Securities and Exchange Commission.
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Founded in 1997, STI is North America’s third-largest and most progressive provider of school bus transportation services, operating more than 8,000 vehicles. Student Transportation’s family of local companies delivers safe, reliable and cost-effective transportation solutions to school districts throughout the U.S. and Canada. Services are delivered by drivers, dispatchers, maintenance technicians, terminal managers and others who are caring members of their local communities. For more information, please visit www.rideSTBus.com .
