WINNIPEG, Oct. 2, 2013 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the
"Company") today announced that it successfully closed the integration
of its credit facilities with HSBC Bank Canada ("HSBC") and HSBC Bank
USA ("HBUS") effective September 30, 2013 and expanded its operating
facilities with the Honkong Shanghai Banking Corporation Limited ("HSBC
Hongkong"). (All figures are in Canadian dollars unless otherwise
The Company will continue to access a US$10 million operating loan
facility with HBUS and a $51 million credit facility with HSBC.
However, the borrowing base is now calculated on a North American basis
consistent with the HSBC operating facility, which simplifies the
Company's ability to access the combined credit facilities of about $61
million through HSBC. The HBUS facility continues to carry an interest
rate based on 30-day LIBOR plus three percent, and the Canadian
facility continues to carry interest at HSBC's prime lending rate plus
0.5 percent on Canadian advances and HSBC's U.S. base rate plus 0.5
percent on U.S.-dollar advances.
"Integrating the management of our credit facilities with HSBC in Canada
and the U.S. will allow us to more easily finance our working capital
needs as we head into the fourth quarter," said Joel Horn, President
and Chief Executive Officer, Legumex Walker Inc. "The realignment of
the facilities provides us with more financial flexibility to support
our operations on both sides of the border."
In addition, HSBC Hongkong increased the operating facility available to
the Company's wholly-owned subsidiary, Legumex Walker China Limited
("LW China"), from US$4.75 million to US$7.75 million and added a US$2
million Invoice Discounting and Factoring Agreement priced at 2.75
percent over three-month LIBOR. "The expansion of the HSBC Hongkong
facility provides self-sustaining support for the ongoing growth in LW
China's operations, including the commissioning of a new processing
plant in Dalian, China during the fourth quarter," Mr. Horn added.
The Company has other credit facilities which are described in its
Management Discussion and Analysis for the period ended December 31,
About Legumex Walker Inc.
Legumex Walker is a growth-oriented processor and merchandiser of pulses
(lentils, peas, beans and chickpeas), other special crops and canola
products. The Company is one of the largest processors of pulses and
other special crops in Canada. Legumex Walker has 14 processing
facilities strategically located in key growing regions in the Canadian
Prairie Provinces, the American Midwest, and China, global sales,
logistics, and distribution platform and access to multimodal
transportation capabilities. In addition, the Company has an 85 percent
interest in Pacific Coast Canola, LLC, which operates the first and
only commercial-scale canola oilseed processing facility west of the
Cautionary Note on Forward-looking Statements
This press release contains certain forward-looking statements which
include statements with respect to the future utilization of the
Company's credit facilities. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
result in the credit facilities not being available or utilized to the
extent anticipated and are based on the assumption that the Company
will continue to satisfy the covenants under the credit facilities.
Such risks and uncertainties include, among others, the risk that the
Company will not be able at all relevant times to satisfy all covenants
under the credit facilities as well as those factors referred to in the
section entitled "Risk Factors" in the Company's Management's
Discussion and Analysis for the period ended December 31, 2012 and the
Company's 2013 Annual Information Form, which are available on SEDAR at
www.sedar.com. 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.
Although the Company believes the assumptions inherent in
forward-looking statements are reasonable, undue reliance should not be
placed on these statements, which only apply as of the date of this
press release. The Company 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: Legumex Walker Inc.
For further information:
INVESTOR & MEDIA RELATIONS:
Investor Relations - Legumex Walker
(416) 815-0700 ext. 257