ROUGEMONT, QC, Sept. 21, 2016 /CNW Telbec/ - Lassonde Industries
Inc. (TSX: LAS.A) ("Lassonde") announces that certain of its subsidiaries have entered into an amended and restated credit
agreement in respect of its US operating and term credit facilities.
The existing credit facilities were due to mature in 2017. In addition to extending their maturity to September 2019, the amendments will result in reduced borrowing costs.
The amended credit facilities, which remain non-recourse to Lassonde's Canadian assets, provide for a US$25,0 million increase of the revolving credit facility to US$75,0 million and a
US$14,0 million increase of the existing term indebtedness to US$164,4
million. The credit facilities are secured by the assets of Lassonde's U.S. subsidiaries as well as by share pledges granted
by each of Lassonde and A. Lassonde Inc. The interest rate of the term loan is LIBOR plus 1.50% to 2.25% depending on the debt to
EBITDA ratio. The credit facilities provide for lightened customary covenants.
Lassonde has entered into the credit agreement with Wells Fargo Bank, N.A., as administrative agent, collateral agent, swingline
lender and issuing lender, Wells Fargo Securities, LLC and BMO Capital Markets Corp., as joint lead arrangers, Wells Fargo
Securities, LLC, BMO Capital Markets Corp., RABOBANK Canada and Caisse centrale Desjardins, as joint book managers, and BMO Capital
Markets Corp., as syndication agent.
"We are pleased to have concluded this transaction and appreciate the support of both our new and existing financial partners.
The facilities should improve our cost of capital and provide us with increased financial flexibility," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
About Lassonde
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink
fruit and vegetable juices and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis and
Rougemont.
Lassonde is also the second largest producer of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company
imports and markets selected wines from various countries and manufactures apple ciders and cider-based beverages.
The Company produces superior quality products through the expertise of approximately 2,100 people working in 14 plants across
Canada and the United States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements that are based on certain assumptions. These forward-looking
statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from
current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory
authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or
revise any forward-looking statements except as required by law.
SOURCE Lassonde Industries Inc.
