BARRIE, Ontario, Oct. 21, 2013 (GLOBE NEWSWIRE) -- Student Transportation Inc. (" STI") (TSX:STB), (Nasdaq:STB) announced today that the Toronto Stock Exchange (the " Exchange") has approved its notice of intention to renew its normal course issuer bid for a portion of its common shares (" Common Shares") as appropriate opportunities arise from time to time. STI's normal course issuer bid will be made in accordance with the requirements of the Exchange. STI may begin to purchase Common Shares on or about October 24, 2013.
As of October 14, 2013, 81,731,372 Common Shares were outstanding. Pursuant to the notice, STI is permitted to acquire up to a maximum number of Common Shares equal to the lesser of 4,086,569 Common Shares, being 5% of the issued and outstanding Common Shares as of October 14, 2013, and that number of Common Shares that can be purchased under the normal course issuer bid for an aggregate purchase price of C$5 million in the 12-month period commencing October 24, 2013 and ending on October 23, 2014. Potential purchases will be made by STI through the facilities of the Toronto Stock Exchange and the NASDAQ Global Select Market and in accordance with applicable regulatory requirements. The price which STI will pay for any Common Share will be the market price of such Common Share at the time of acquisition. Pursuant to the Toronto Stock Exchange rules, the maximum number of Common Shares that may be repurchased during the same trading day is 23,036 Common Shares, subject to STI's ability to make one block purchase per calendar week which exceeds such limit. The Common Shares will be cancelled upon their purchase by STI. STI will fund the purchases either through borrowings on its senior debt facility or out of available cash. STI believes that the purchase by STI of a portion of outstanding Common Shares is an appropriate use of senior borrowing capacity and/or available cash and is in the best interests of STI and its security holders.