TORONTO, May 12 /CNW/ - Maple Leaf Foods (MFI:TSX) announced today that it has completed an agreement with a syndicate of banks, including the majority of the banks in its existing revolving credit facility, to augment the Company's primary revolving credit facility with a $250 million short term bank lending facility. The short term bank facility matures concurrently with the Company's primary revolving credit facility, on May 31, 2011.
The facility is an unsecured, delayed draw term loan and bears interest based on short-term interest rates. The facility will be used to meet the Company's short term funding requirements for general corporate purposes, and to provide an adequate level of excess liquidity.
The facility includes covenants that are materially consistent with the Company's existing credit arrangements.
Maple Leaf Foods Inc. is a leading Canadian food processing company committed to delivering quality food products to consumers around the world. Headquartered in Toronto, Canada, the Company employs approximately 23,500 people at its operations across Canada, and in the United States, Europe and Asia. Maple Leaf Foods Inc. reported sales of approximately $5.2 billion in 2009.
SOURCE Maple Leaf Foods Inc.
For further information: For further information: Michael Vels, Executive Vice President & Chief Financial Officer, (416) 926-2048