SYMBOL: TSX: AGT
REGINA, March 22, 2012 /CNW/ - Alliance Grain Traders Inc. ("AGT") announced today that its wholly-owned subsidiary, Alliance Pulse
Processors Inc. ("APP"), has entered into an extension agreement for its $130 million senior
secured credit facility with The Bank of Nova Scotia and a syndicate of
two other banks, HSBC Bank of Canada and Rabobank Nederland (Canadian
Branch). The extension term will run until April 29, 2013 and carries a
further one year term-out provision that takes the commitment to April
2014. The terms and covenants of the credit agreement remain unchanged
and AGT has confirmed that it is in compliance with all of its terms.
"We are pleased to be able to use our borrowing capacity in Canada to
drive our business in Canada, the U.S. and Australia and the extension
of this credit facility is a positive development for AGT. Our company
has the confidence of its lenders and our management team is ready to
drive the strategy for growth and utilization of our asset base around
the globe. It appears that credit availability is constraining the
global economic environment. AGT has established the necessary
financing for our operating subsidiaries to fund its global
distribution platform," said Mr. Murad Al-Katib, President and CEO of
AGT. "We will continue to use our credit facilities as appropriate to
drive our asset utilization, execute our global growth plans and manage
our working capital to create value for our shareholders. In times of
banking sector challenge, we are pleased to be aligned with a strong
group of international lenders," added Mr. Al-Katib.
"The extension of our core operating facility for Canada, the U.S. and
Australia is an important step in establishing the appropriate credit
facilities to drive our business globally. We will continue to look at
the optimization of our capital structure and also utilize debt and
cash flows from operations to grow our earnings," said Mr. Huseyin
Arslan, Executive Chairman of AGT. "The 2012 period will see AGT
continue to refine and solidify its global financing facilities with
the aim to use our position as a global company to expand our access to
competitive debt financing instruments. Our syndicate of lenders in
this facility continues to demonstrate their effectiveness in extending
competively priced financing that fits within our operational
strategies," added Mr. Arslan.
The terms of the credit facility are consistent with market standards
for the industry and include customary conditions, covenants and
representations and warranties. The credit facility will be guaranteed
by AGT and certain of APP's wholly-owned subsidiaries. Scotia Capital
served as Lead Arranger and Bookrunner, with The Bank of Nova Scotia
acting as Administration Agent.
AGT also announced its fourth quarter and year end 2011 financial
statements will be released prior to market open on Tuesday, March 27,
2012. A conference call to discuss fourth quarter and year end results
is scheduled for Tuesday, March 27, 2012 at 10:30 a.m. Eastern time. To
join the conference, please dial 1-800-319-4610 (Toll free in Canada &
USA) or +1-604-638-5340 (Outside Canada & USA).
A recording of the call will be available on our website at www.alliancegrain.com on March 28, 2012. A telephone replay will also be available until
midnight Eastern time, Tuesday, April 10, 2012. To access the replay,
please call 1-800-319-6413 (Toll free from Canada & USA,) or
+1-604-638-9010 (from outside Canada & USA). When prompted, enter the
code 4537, followed by the number sign (#).
The financial statements and notes for the three and twelve months ended
December 31, 2011, as well as the related management's discussion and
analysis, will be filed on SEDAR at www.sedar.com and will also be available on the AGT website at www.alliancegrain.com prior to the conference call.
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 and merchandising and sales offices in the
U.K., the Netherlands and Spain, 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.
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 28, 2011 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.
For further information:
Investor Relations, Omer Al-Katib
Tel: (306) 244-1318