School Bus Contractors

STA to sell $50 million in private placements

Posted on April 16, 2008

TORONTO — Student Transportation of America Ltd. (STA) has agreed to sell, on a private placement basis, more than 8 million common shares to two investors, for gross proceeds of $50 million.

The first investor, purchasing 6,557,377 common shares for $40 million, is SNCF Participations S.A., a subsidiary of Société Nationale des Chemins de fer Français, the French National Railway.

The second investor is the Caisse de dépôt et placement du Québec, which is purchasing 1,709,402 common shares for $10 million. The Caisse is currently STA’s largest shareholder.

The transactions are expected to close on or around Friday.

STA officials said that the company will use the net proceeds from the private placements to repay amounts outstanding under its growth credit facility and to fund future growth opportunities, including acquisitions, new contract bids and conversions.

In connection with the investment by SNCF Participations, STA agreed to expand its board of directors to eight members and to appoint Jean-Pierre Farandou, director of SNCF’s Public Transport Division, to the STA board.

“We are delighted to have SNCFP make this substantial investment in STA and are excited to have Jean-Pierre join our board,” said Denis Gallagher, STA’s chairman and CEO. “We are also very pleased that the Caisse de dépôt continues to demonstrate confidence and commitment to STA by increasing its investment.”

Related Topics: Student Transportation of America

Comments ( 0 )
More Stories
A revision to federal regulations that would make more workers eligible for overtime pay was slated to go into effect on Dec. 1, but a federal judge has granted a nationwide preliminary injunction. Photo by Barry Johnson
News

Court Puts New Overtime Rule on Hold

A revision to federal regulations that would make more workers eligible for overtime pay was slated to go into effect on Dec. 1, but a federal judge has granted a nationwide preliminary injunction.

Photo by Barry Johnson
Article

6 Ways to Address New Overtime Rules

Update: On Nov. 22, a federal judge granted a nationwide preliminary injunction against the Department of Labor’s new overtime rule, which means that it will not go into effect on Dec. 1 as scheduled, and as discussed in this article.

Be the First to Know

Get the latest news and most popular articles from SBF delivered straight to your inbox. Stay on top of the school bus industry and don't miss a thing!