Blue Bird Corporation, the leading independent designer and manufacturer of school buses, announced that 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.