Village Farms International Extends its Canadian Debt

TRADING SYMBOL:  
The Toronto Stock Exchange:  
Village Farms International - VFF

VANCOUVER, Jan. 14 /CNW/ - Village Farms International, Inc. (the "Company") (TSX: VFF) announced that it extended its fully drawn Canadian $41.0 million term loan to October 31, 2013 from October 31, 2011 and its current Canadian $12 million revolver facility (current balance is nil) to October 31, 2011. A term loan extension fee of 50 basis points was paid at closing.   

The Company continues to have three (3) fixed-for-floating interest rate swap agreements effective from January 25, 2011 through January 25, 2013 in the notional amount of $40.9 million in order to reduce the interest rate variability on its Canadian term loan.  The Company effectively fixed its interest rate on its Canadian term debt at 5.68%, which is not altered by the extension. 

About the Company

The Company is one of the largest producers, marketers and distributors of premium-quality, greenhouse-grown tomatoes, bell peppers and cucumbers in North America.  This premium product as well as premium product produced under exclusive arrangements with other greenhouse producers is grown in sophisticated, highly efficient and intensive agricultural greenhouse facilities. Product is marketed and distributed under the Village Farms® brand primarily to retail grocers and dedicated fresh food distributors throughout the United States and Canada.  The Company owns greenhouses located in Texas and British Columbia and operates distribution centres located in key markets in the United States and Canada.  Since its inception, the Company has been guided by sustainable agricultural principles which integrate three main goals; environmental health, economic profitability, and social and economic equality.

Forward-Looking Statements

This press release contains certain "forward-looking statements". These statements relate to future events or future performance and reflect the Company's expectations regarding its growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward-looking statements reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to the Company. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other comparable terminology. A number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, including, but not limited to, such risks and uncertainties as availability of resource, competitive pressures and changes in market activity, risks associated with U.S. and international sales and foreign exchange, regulatory requirements and all of the other "Risk Factors" set out in the Company's current annual information form and management's discussion and analysis for the three and nine months ended September 30, 2010, which is available electronically at www.sedar.com.  Actual results may differ materially from any forward-looking statement. Although the Company believes that the forward-looking-statements contained in this press release are based upon reasonable assumptions, you cannot be assured that actual results will be consistent with these forward-looking statements.  These forward-looking statements are made as of the date of this press release, and other than as specifically required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances.



SOURCE Village Farms International, Inc.

For further information:

Stephen C. Ruffini, Senior Vice-President and Chief Financial Officer, Village Farms International, Inc. (732) 676-3008.


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