SYMBOL: TSX: AGT
REGINA,SK, Jan. 24, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT") announced today that its wholly-owned subsidiary, Alliance Pulse
Processors Inc. ("APP"), has entered into an aggregate amount of CDN$300 million credit
facilities with The Bank of Nova Scotia and a syndicate of six other
lenders: HSBC Bank Canada, Canadian Imperial Bank of Commerce, Farm
Credit Canada, Alberta Treasury Branches, Export Development Canada and
ICICI Bank Canada. The credit facilities includes an aggregate amount
of CDN$270 million senior secured credit facilities and a CDN$30
million accordion that increases the size of the facilities to CDN$300
million.
"We are pleased to announce these new credit facilities, which we feel
continues to show the strength of our business and balance sheet. The
initiatives we have undertaken to strengthen our business in this
difficult credit environment and the success we have been able to
demonstrate based on their implementation have allowed us to continue
to work with existing lenders and expand that group to include new
partners to arrange this new financing," said Mr. Murad Al-Katib,
President and CEO of AGT. "We will continue to use our credit
facilities as appropriate to drive our asset and global growth plans
and build on the confidence our lenders have shown in our business, our
management team and our strategy. AGT is focused on the implementation
of our strategy to utilize our existing asset base to develop sales in
our staple foods and ingredients business. We have capital, markets
and capacity. That gives us the capability to drive earnings and value
for our shareholders."
"As a company, we have been focused on strengthening our credit
availability from our lenders around the globe, using our strong
balance sheet to satisfy our borrowing requirements. These new credit
facilities continue to refine and solidify our working capital and
financing requirements in Canada, the U.S. and Australia. Our
Management will continue to focus on efficient management of our
working capital. Inventory turns, receivable collection and reduction
of AGT's overall cash cycle are the subjects of many management
initiatives. Availability of longer-term working capital and financing
is an essential element of our plan to boost utilization of our global
footprint, leading to earnings improvements. We are pleased with our
partners on these facilities and welcome our new lending partners,"
added Mr. Huseyin Arslan, Executive Chairman of AGT.
The credit facilities will be used for general corporate purposes as
well as to consolidate APP's existing bank credit facilities and
contains financing tranches that may be utilized for future permitted
acquisitions and capital expenditures as set forth in the credit
facilities. The new facilities have maturity dates
of January 24, 2016 which may be extended at the request of APP for
one-year periods with the consent of the syndicate and are subject to
certain other terms and conditions.
The terms of the credit facilities include customary conditions, events
of default, covenants and representations and warranties. The credit
facilities are guaranteed by AGT and a select number of its direct
and indirect wholly-owned subsidiaries. Scotia Capital served as Lead
Arranger and Bookrunner, with The Bank of Nova Scotia acting
as Administration Agent.
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a value-added pulse, staple food
and ingredient processor for export and domestic markets. Through its
offices and processing facilities located in some of the best
agricultural growing regions in Canada, the U.S., Turkey, China,
Australia and South Africa, merchandising and sales offices in the
U.K., the Netherlands and Spain and origination offices in Russia, AGT
produces a full range of pulses and specialty crops including lentils,
peas, chickpeas, beans and canary seed as well as food ingredients such
as pulse flours, proteins, starches and fibres. Through its
subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods
such as Arbella Pasta, rice, and milled wheat products, including
bulgur and semolina.
Cautionary Statements
Certain statements in this press release are forward-looking statements.
The reader is cautioned that assumptions used in the preparation of
such information, although considered reasonable by AGT at the time of
preparation, may prove to be incorrect. Forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of AGT
(including its operating subsidiaries) to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements. Such risks and uncertainties include,
among others, the actual results of harvests, fluctuations in the price
of lentils and other crops, failure of plant, equipment or processes to
operate as anticipated, accidents or labour disputes, risks relating to
the integration of acquisitions or to international operations, as well
as those factors referred to in the section entitled "Risk Factors" in
the Annual Information Form of AGT dated March 27, 2012 which is
available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document.
Although AGT has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. AGT expressly disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except in
accordance with applicable securities laws.
SOURCE: Alliance Grain Traders Inc.
