MACON, Ga.--(BUSINESS WIRE)--
Blue Bird Corporation (NASDAQ: BLBD) (the “Company”) today announced the
exercise of the Company’s right to convert all outstanding shares of its
7.625% Convertible Cumulative Preferred Stock, Series A (“Series A
Preferred Stock”) into shares of common stock, $0.0001 per share, of the
Company (“Common Stock”), subject to a beneficial ownership limitation
which prohibits the Company from effecting a conversion of Series A
Preferred Stock to the extent that, after giving effect to such
conversion, the holder of the Series A Preferred Stock would
beneficially own in excess of 9.99% of the outstanding Common Stock (the
“Beneficial Ownership Limitation”), unless such holder waives the
limitation upon 65 days’ notice to the Company.
On October 22, 2018, the volume weighted average price of the Company’s
Common Stock as reported by Bloomberg was $19.27, which marked the 20th
consecutive trading day (following the commencement date of the
Company’s potential right to convert) in a period of 30 consecutive
trading days that the volume weighted average price of the Common Stock
closed above $16.22 (which is equal to 140% of the conversion price of
$11.5851 currently in effect), triggering the right of the Company to
mandatorily convert, subject to the Beneficial Ownership Limitation, all
shares of Series A Preferred Stock into shares of Common Stock in
accordance with the provisions of the Certificate of Designations of the
Series A Preferred Stock. The effective date of the conversion will be
November 13, 2018 (the “Conversion Date”), which is the 15th trading day
following the date of this press release.
On the Conversion Date the holder of the Series A Preferred Stock will
receive approximately 799,615 shares of Common Stock for the shares of
Series A Preferred Stock being mandatorily converted (based on the
conversion rate of 8.6318 shares of Common Stock for each share of
Series A Preferred Stock being mandatorily converted). There are
currently 92,636 shares of Series A Preferred Stock issued and
outstanding, and the Company will convert 92,636 shares of Series A
Preferred Stock. No fractional shares of Common Stock will be issued
upon conversion of the Series A Preferred Stock and, instead, cash will
be paid in lieu of any fractional shares of Common Stock based on the
closing price of the Common Stock on November 13, 2018.
The Company paid its last dividend on the Series A Preferred Stock in
the amount of $181,220.83 per share of Series A Preferred Stock on
September 15, 2018 to holders of record of the Series A Preferred Stock
as of August 15, 2018. No dividend will be declared or paid on the
Series A Preferred Stock for the interim period between September 15,
2018 and the Conversion Date.
On and after the Conversion Date, dividends shall cease to accrue on the
shares of Series A Preferred Stock called for conversion and all rights
of the holders of such shares of Series A Preferred Stock shall
terminate except for the right to receive the number of whole shares of
Common Stock issuable upon conversion of the Series A Preferred Stock
and cash in lieu of any fractional shares of Common Stock, as described
above.
About Blue Bird Corporation
Blue Bird Corporation (NASDAQ: BLBD) is the leading independent designer
and manufacturer of school buses, with more than 550,000 buses sold
since its formation in 1927 and approximately 180,000 buses in operation
today. Blue Bird’s longevity and reputation in the school bus industry
have made it an iconic American brand. Blue Bird distinguishes itself
from its principal competitors by its singular focus on the design,
engineering, manufacture and sale of school buses and related parts. As
the only manufacturer of chassis and body production specifically
designed for school bus applications, Blue Bird is recognized as an
industry leader for school bus innovation, safety, product
quality/reliability/durability, operating costs and drivability. In
addition, Blue Bird is the market leader in alternative fuel
applications with its propane-powered, electric and compressed natural
gas-powered school buses. Blue Bird manufactures school buses at two
facilities in Fort Valley, Georgia. Its Micro Bird joint venture
operates a manufacturing facility in Drummondville, Quebec, Canada.
Service and after-market parts are distributed from Blue Bird’s parts
distribution center located in Delaware, Ohio. For more information on
Blue Bird’s complete line of buses, visit www.blue-bird.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181024005258/en/
Blue Bird Corporation
Mark Benfield, 478-822-2315
Investor
Relations & Government Affairs
[email protected]
Source: Blue Bird Corporation