FORT VALLEY, Ga.--(BUSINESS WIRE)--Blue Bird Corporation (Nasdaq: BLBD), the leading independent designer and manufacturer of school buses, announced today that it will be paying down its $226 million term debt by $25 million, or 11%. Blue Bird Corporation has paid down $34 million this fiscal year-to-date, including the required amortization payments made under the loan agreement.
“Generating strong free cash flow is a fundamental priority at Blue Bird and being able to voluntarily pay down a substantial portion of our debt is an example of the optionality this provides. We believe this is a prudent decision as we manage our balance sheet for our ongoing business and position the company for future growth,” said Phil Tighe, Chief Financial Officer of Blue Bird Corporation.
About Blue Bird Corporation
Blue Bird 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 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.