Blue Bird Announces Refinancing of Term Loan and Revolving Credit Facility

Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leading
independent designer and manufacturer of school buses, announced today
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.

Additional details can be found in the Company’s 8-K filed on December
15, 2016.

About 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. As the only
manufacturer of chassis and body production specifically designed for
school bus applications, Blue Bird is recognized as an industry leader
for school bus innovation, safety, product
quality/reliability/durability, operating costs and drivability. In
addition, Blue Bird is the market leader in alternative fuel
applications with its propane-powered, gasoline-powered and compressed
natural gas-powered school buses. Blue Bird manufactures school buses at
two facilities in Fort Valley, Georgia. Its Micro Bird joint venture
operates a manufacturing facility in Drummondville, Quebec, Canada.
Service and after-market parts are distributed from Blue Bird’s parts
distribution center located in Delaware, Ohio.

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