Recent Updates — BLBD

Blue Bird Corporation closed a new $600 million senior secured credit facility on September 30, 2026, replacing its previous $250 million facilities. The agreement consists of a $300 million revolving credit facility and a $300 million delayed draw term loan, extending the maturity date from November 17, 2028, to September 30, 2031. Borrowings under the delayed draw term loan are available for up to 24 months and may be used to refinance existing debt or fund capital projects, research and development, and working capital. The new terms lower the interest rate margin to SOFR plus 1.25% to 2.25%, reduce the maximum total net leverage ratio to 3.25x, and expand the accordion feature. At closing, approximately $86 million of carry-over debt was drawn under the new facilities. Blue Bird Corporation designs, engineers, and manufactures school buses with a focus on safety and low- or zero-emission solutions.

Blue Bird Corporation announced a definitive agreement to acquire the assets of Detroit Chassis LLC for $7 million plus assumed liabilities, securing manufacturing capabilities for Ford's F-53 and F-59 commercial stripped chassis. Concurrently, Blue Bird entered into a Master Collaboration Agreement with Ford Motor Company to design, manufacture, and sell next-generation versions of these platforms using Ford powertrains. The transaction involves an estimated $90 million investment in 2027, with production expected to commence in the first half of 2028. Management projects this expansion could generate over $600 million in annual revenue from approximately 10,000 units long-term. Blue Bird Corporation designs and manufactures school buses and commercial vehicles.