NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
SYMBOL: TSX: AGT
REGINA, Feb. 7, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT") announced today that it has priced its previously announced offering
of $125 million in aggregate principal amount of senior secured second
lien notes due 2018 (the "Notes"). The Notes will bear interest at an annual rate of 9% and will be
sold at a price of 99.50% of principal for gross proceeds of
$124,375,000.
AGT expects to close the offering of the Notes on February 14, 2013,
subject to the satisfaction of customary closing conditions.
The Notes were offered in all provinces of Canada and in the United
States by a syndicate of underwriters led by Scotia Capital Inc., CIBC
World Markets Inc. and GMP Securities L.P., and including AltaCorp
Capital Inc. and Canaccord Genuity Corp., by way of a private placement
under applicable securities laws.
"We are pleased to announce that our senior secured note offering is
being well received by investors. This private placement allows us to
extend the term of a portion of our debt to five years. This provides
additional certainty on our balance sheet for both duration and
interest rates when we combine the three year facilities of $300
million we recently announced for Canada, the U.S. and Australia with
the new $125 million five year notes," said Mr. Murad Al-Katib,
President and CEO of AGT. "This gives us the capital to execute our
business plan to expand the utilization our global asset base,
commercialize our new pulses based food ingredient platform and seek to
drive earnings and value for our shareholders and bondholders."
"Access to capital, especially in difficult credit environments, is a
necessity in our business. We will continue to implement a vigilant
management program focused on boosting our asset utilization and
managing our working capital. Demand for pulses and staple foods
remains strong in our traditional markets and we see great potential in
the pulses ingredient markets to supply our products to the food, feed
and petfood markets," added Mr. Huseyin Arslan, Executive Chairman of
the AGT Board. "We look forward to the opportunity to deliver good
progress towards achieving our global objectives through developing
opportunities from all of our geographies."
AGT intends to apply the net proceeds of the proposed offering to repay
indebtedness under certain existing credit facilities, including
certain revolving credit indebtedness that will be available for future
reborrowings that may be used for general corporate purposes.
The Notes will not be qualified for distribution to the public under the
securities laws of any province or territory of Canada and may not be
offered or sold in Canada, directly or indirectly, other than pursuant
to applicable private placement exemptions. The Notes have not and will
not be registered under the U.S. Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of such
Act. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the Notes in any jurisdiction.
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.
