Blue Bird Corporation, the leading independent designer and manufacturer of school buses, announced it has successfully refinanced its $160 million term loan and $75 million revolving line of credit.

The new credit facility, led by Bank of Montreal as administrative agent and an issuing bank, reduces the Company’s effective interest rate paid by approximately 4 pts. and is expected to save the Company approximately $4 million in fiscal year 2017.

“This refinancing is in line with our strategic objective to reduce the cost of our debt and improve our credit profile. This, together with continued solid earnings growth, strengthens the Company as we build on our market-leading brand," said Phil Tighe, CFO of 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.