Maple Leaf Foods Issues Notice of Repayment for $706 million Senior Notes
Canadian Competition Bureau Clears Purchase of Canada Bread by Grupo Bimbo
TORONTO, March 17, 2014 /CNW/ - Maple Leaf Foods Inc. (TSX: MFI) ("Maple Leaf" or the "Company") announced today that it has issued notice of repayment to be made on April 14, 2014 for all of its outstanding senior notes (the "Notes") in aggregate principal amounts of Cdn$706 million (including US$318 million notes converted at 1.106 USD/CAD) and original maturity dates ranging from December 2014 to January 2021. The estimated redemption amount based on current foreign exchange rates, U.S. Treasury yields and Government of Canada bond yields, including make-whole premiums and accrued interest, is $800 million.
The repayment will be paid from available and committed bank credit facilities and will provide greater financial flexibility. Following repayment of the Notes, the Company's remaining debt will consist largely of short term bank facilities that the Company plans to repay with proceeds from the previously announced $1,650 million sale of its interest in Canada Bread Company, Limited ("Canada Bread") to Grupo Bimbo, S.A.B. de C.V. The Canadian Competition Bureau has recently given clearance for the transaction to proceed. Subject to remaining regulatory and shareholder approvals, the sale is expected to close in the second quarter of 2014.
Maple Leaf Foods Inc. is a leading food processing company, headquartered in Toronto, Canada. The Company employs approximately 18,000 people at its operations across Canada and in the United States, the United Kingdom, and Asia. The Company had sales of $4.4 billion in 2013.
Forward Looking Statements
This document may include forward looking statements within the meaning of applicable securities law. Such statements include, but are not limited to, the amount and timing of amounts payable relating to make-whole premiums and foreign currency-denominated obligations, the continued access to sources of financing, and the timing and completion of the sale of Canada Bread to Group Bimbo and any use of proceeds flowing from such transaction. There can be no assurances that such transaction will be completed. These statements are not guarantees of future events and involve assumptions and risks and uncertainties that are difficult to predict. Actual results may differ materially from those expressed, implied or forecasted in such forward-looking information. Some of the factors that could cause actual results or outcomes to differ materially from the results expressed, implied or forecasted by such forward-looking information, including some of the assumptions used in making such statements, is discussed more fully in the Company's Annual Management's Discussion and Analysis for the period ended December 31, 2013 including the section entitled "Risk Factors" that are updated each quarter in the Management's Discussion and Analysis, and are available on SEDAR at www.sedar.com Maple Leaf does not intend to, and Maple Leaf disclaims any obligation to, update any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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