NFI completes amendments to its credit facilities

December 29, 2022

All amounts shown in this press release are in U.S. dollars unless otherwise indicated. WINNIPEG, Manitoba, Dec. 29, 2022 (GLOBE NEWSWIRE) -- December 29, 2022: (TSX: NFI, OTC: NFYEF, TSX: NFI.DB) NFI Group Inc. (“NFI” or the “Company”), a leading independent bus and coach manufacturer and a leader in electric mass mobility solutions, today announced that it has completed the amendments to the Company’s existing senior revolving credit facility (the “Revolver”) and its revolving UK credit facility (the “UK Facility” and collectively with the Revolver, the “Facilities”) referred to in the Company’s news release of December 23, 2022.   Details are as follows: Amendments provide relief from previous key financial covenants (Total Leverage Ratio1 (“TLR”), Minimum Adjusted EBITDA2 and Interest Coverage Ratio3 (“ICR”)) for the fourth quarter of 2022 and the first two quarters of 2023 – the period ending June 30, 2023 (the “Waiver Period”).During the Waiver Period, the Company is subject to a Total Net Debt to Capitalization (“TNDC”) ratio, starting in January 2023, and a minimum Adjusted EBITDA2 covenant starting in March 2023. Additional details provided below.Under the amendments, NFI has lowered the Revolver capacity from $1.25 billion to $1.0 billion, and the UK Facility from £50 million to £40 million. The Revolver now has a $25 million minimum liquidity requirement, which was previously $250 million.The Revolver matures on August 2, 2024 (“Maturity Date”), and, through the amendments, the UK Facility now matures on June 30, 2023 (was previously May 1, 2023).NFI and its banking syndicate partners are now focused on developing new longer-term credit arrangements, and NFI will be seeking agreements that provide appropriate capacity and covenants matched to the Company’s anticipated financial performance and recovery. The Company is targeting completion of these changes prior to the end of the Waiver Period. In addition to today’s amendments, NFI also expects it will finalize agreements in January 2023 for the Government of Manitoba’s proposed CAD$50 million debt facility, to support investments in working capital and general corporate purposes, and Export Development Canada’s (“EDC”) credit facilities of up to $150 million to support supply chain financing ($50 million) and surety and performance bonding requirements for new contracts (up to $100 million). _________________________________ 1 Total Leverage Ratio (“TLR”) calculation is provided under “NFI Credit Agreement Amended Covenants.” 2 See Non-IFRS measures. 3 Interest Coverage Ratio (“ICR”) calculation is provided under “NFI Credit Agreement Amended Covenants.” NFI Credit Agreement Amended Covenants NFI partnered with banking syndicate members to implement covenants during the Waiver Period that are based on a financial model that utilizes a conservative downside projection as compared to NFI’s internal financial objectives. NFI anticipates that it will be able to comply with the covenants that are in place during the Waiver Period. Following the Waiver Period, certain waived covenants would resume as per the fifth amended credit agreement, completed on July 29, 2022, unless NFI has entered into new credit agreements. Details are provided in the table below: Quarter and MonthsTotal Net Debt to Capitalization1Minimum Adjusted EBITDA2(cumulative calculation)Minimum Liquidity3Total Leverage Ratio4Interest Coverage Ratio52022 Q4WaivedWaived$25 millionWaivedWaivedJanuary 2023

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