Student Transportation of America Ltd. and Student Transportation of America ULC Declare February 2009 Distribution
Barrie, Ontario (February 23, 2009) Student Transportation of America Ltd. (“STA Ltd.”) and Student Transportation of America ULC (“STA ULC”, and together with STA Ltd., the “Issuer”) (TSX: STB, STB.UN) today announced that it will pay on March 16, 2009 to holders of record at the close of business on February 27, 2009 a cash dividend payment of C $0.04636833 per share on common shares held separately from IPSs, a cash payment of C $0.09125000 per income participating security (“IPS”) and a cash interest payment of C $0.04488167 per C $3.847 of subordinate notes of STA ULC held separately from IPSs.
The common shares trade on the Toronto Stock Exchange under the symbol STB and the IPSs trade on the Toronto Stock Exchange under the symbol STB.UN. For clarity, each IPS consists of one common share of STA Ltd. and C $3.847 principal amount of 14 per cent subordinated notes of STA ULC, a wholly-owned subsidiary of STA Ltd.
Student Transportation of America Ltd. designates these dividends to be “eligible dividends” pursuant to subsection 89(14) of the Income Tax Act (Canada) and its equivalent in any provinces of Canada.
About Student Transportation
Founded in 1997, Student Transportation is the fourth-largest provider of school bus transportation services in North America, conducting operations through local operating subsidiaries. Student Transportation has become a leading school bus transportation company by aggregating operations through the consolidation of existing providers and conversion of in-house operations and currently operates more than 5,600 school vehicles in North America. For more information, please visit www.rideSTA.com.
This news release contains “forward-looking statements” within the meaning of applicable securities laws, which reflects the expectations of management regarding Student Transportation of America Ltd.’s, Student Transportation of America ULC’s and Student Transportation of America Holdings, Inc.’s (the “Company”) results of operations, expense levels, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the Company’s growth strategy and cash distributions. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “track”, “targeted”, “estimate”, “anticipate”, “believe”, “should”, “could”, “plans” or “continue” or similar expressions suggesting future outcomes or events. These forward looking statements reflect the Company’s current expectations regarding anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at which or by the performance or results will be achieved. A number of factors could cause our actual results to differ materially from the results discussed, expressed or implied in any forward-looking statement made by us or on our behalf, including, but not limited to, the factors discussed under “Risk Factors” in our Annual Information Form. These forward looking statements are made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Student Transportation of America Ltd.
Denis J. Gallagher
Chairman and Chief Executive Officer
(732) 280-4213 (FAX)
Patrick J. Walker
Executive Vice President and Chief Financial Officer
(732) 280-4213 (FAX)