SunOpta Amends and Expands Syndicated Credit Facilities
The Amended Agreement replaces current revolving facilities of $125 million and term facilities totalling $21 million, and also provides for an additional $50 million in availability upon the exercise of an uncommitted accordion feature.
31 Jul 2012 --- SunOpta Inc., a leading global natural and organic foods company, announced that it has entered into an amended and restated credit agreement (the Amended Agreement) with a syndicate of lenders led by The Bank of Montreal, as agent. The Amended Agreement provides for additional borrowing capacity and reduced pricing over its four year term, plus an accordion feature to further support the Company's future growth objectives.
The Amended Agreement provides secured revolving credit facilities of $175 million, including $10 million in Canadian funds. The Amended Agreement replaces current revolving facilities of $125 million and term facilities totalling $21 million, and also provides for an additional $50 million in availability upon the exercise of an uncommitted accordion feature. The increase in funds available will be used to support the Company's growth objectives throughout the term of the agreement.
Interest on borrowings under this facility accrue based on various reference rates including LIBOR (London Interbank Offered Rate), plus an applicable margin. The applicable margin is set quarterly based on average borrowing availability and will initially be set at 2.25%, as compared to the applicable margin under the previous syndicated agreement of 3.50%. The applicable margin under the Amended Agreement can range from 1.75% to 2.50%, and represents a substantial improvement in pricing versus the previous facility.
Robert McKeracher, Vice President and Chief Financial Officer commented, "We are very pleased with the continued strong support from our syndicate of lenders. We believe this facility will provide improved borrowing costs, and when combined with positive cash flows from operations, will provide increased financial flexibility and capital resources to support both internal growth projects and future potential acquisitions."
The Company's syndicate of lenders includes The Bank of Montreal, Rabobank Nederland Canadian Branch, Export Development Canada and the Canadian Imperial Bank of Commerce. The facilities support the core North American food operations and are collateralized by substantially all of its assets and substantially all the assets of certain subsidiaries in which a security interest may lawfully be granted.
