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TFI plans to list on NYSE in 6 million-share US offering

Proceeds could give Canada’s largest transportation company more firepower to pursue acquisitions as it prepares to make a big leap into capital markets south of the border.

Canadian TFI's U.S. transportation and logistics businesses include CFI. (Photo: Jim Allen/FreightWaves)

Canada’s largest transportation company, TFI International (TSX: TFII), plans to tap into the U.S. capital markets with a 6 million-share offering and listing on the New York Stock exchange.

Proceeds from the the U.S. offering, announced Monday after the company released its fourth-quarter financial results, would pay down an outstanding credit facility and potentially open the door for more acquisitions.

“If it’s successful, it will improve our flexibility” with mergers and acquisitions, CEO Alain Bedard told analysts while discussing the fourth-quarter results.

TFI applied to list in the NYSE under the symbol TFII. The company uses the symbol for its existing shares in the Toronto stock exchange.

TFI’s performance on the Toronto Stock Exchange during the past year as seen on FreightWaves’ SONAR platform.

TFI said the pricing of the offering will depend on “the context of the market” and will be determined pending an underwriting agreement. The company did not offer a timetable.

The offering’s underwriters include Morgan Stanley, Bank of America Securities, J.P. Morgan and Credit Suisse as joint lead book-running managers and RBC Capital Markets and UBS Investment Bank as joint book-runners. Cowen, National Bank of Canada Financial, Stephens Inc., Stifel, and Wolfe Capital Markets and Advisory are serving as co-advisers.

TFI had a market cap of C$3.6 billion as of the close of trading in Canada on Monday. The company reported an average of just over 81 million shares during the fourth quarter.

Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at [email protected]