SunOpta Completes Expansion of European Credit Facility
16 Oct 2014 --- SunOpta Inc., a leading global company focused on natural, organic and specialty foods, announced that its wholly owned subsidiary The Organic Corporation B.V., based in the Netherlands, has entered into a Multi-Purpose Facilities Agreement to increase the debt capacity of SunOpta's rapidly growing international sourcing operations which form part of the Global Sourcing and Supply segment.
"The expanded Club Facility will provide additional liquidity for our growing global sourcing, supply and international processing operations, allowing us to capitalize on new opportunities as demand for organic and non-GMO raw materials and ingredients continues to grow around the globe. When it comes to sourcing organic raw materials and ingredients, our global reach is a strategically vital component and serves as the foundation for many of the integrated consumer packaged and value-added ingredient categories we compete in," said Rob McKeracher, Vice President and Chief Financial Officer of SunOpta. "When combined with strong cash flows and funds available within our North American syndicated credit facilities, we feel we are well positioned to fund future growth. The support from our lenders is a testament to the strength of our business model and our relationships continue to grow as we look to achieve our strategic and financial goals."
The Club Facility provides for a total of EURO92.5 million in available financing which includes a EURO80 million revolving credit facility covering working capital needs, a EURO5.0 million facility that will cover commodity hedging, a EURO5.0 million facility designated for letters of credit and a EURO2.5 million pre-settlement facility covering currency hedging requirements. The Club Facility was underwritten by ING Bank N.V., Rabobank (Cooperatieve Centrale Raiffeissen-Boerenleenbank B.A.), and Deutsche Bank AG, Amsterdam Branch.
The new EURO80 million revolving credit facility replaces an existing EURO45 million credit facility and is secured by the working capital of the international sourcing and supply operations. Continued growth in demand for organic raw materials, in North America and internationally, led to the need for an increased credit facility. SunOpta's international sourcing operations intend to leverage the increased availability of funds to continue to expand the sourcing and value-added processing aspects of their portfolio. There is no set maturity to the Club Facility and the limit can be extended or adjusted based on the needs of the business based upon approval of the Lenders. Interest rates under the Club Facility are expected to be similar to the previous credit facility.
