WINNIPEG, March 20, 2020 /CNW/ - Ag Growth International Inc. ("AGI") (TSX: AFN) today announced it has amended and extended its credit facility with a syndicate of five Canadian Banks, led by the Canadian Imperial Bank of Commerce. The extension process commenced in earnest in January 2020, with the objective of improving the Company's terms and conditions in a favourable banking environment. The extension of the facility to March 2025, and the amendment of certain terms including an improved pricing grid and an increase to the maximum senior debt leverage ratio to 3.75 for the balance of 2020, take on an increased importance with the recent outbreak of COVID-19. For reference, AGI's senior debt leverage ratio as at its most recently published quarter-end, September 30, 2019, was 2.78x. AGI would like to thank CIBC as well as TD Bank, National Bank of Canada, HSBC Bank Canada and the Bank of Nova Scotia, as well as our partners at Prudential Capital, for their continuing support.
"We would like to thank our partners at each of the banks for their ongoing support", said Tim Close, President and CEO of AGI. "While the work on this amendment was started prior to the COVID-19 crisis and was part of ongoing efforts to optimize our business to facilitate our strategies, this improved facility provides additional flexibility for our business as we move through a very unusual year. As we worked through this amendment and the COVID crisis escalated, our banks have continued to express their strong support."
AGI Company Profile
AGI is a leading provider of solutions for the global food infrastructure, including seed, fertilizer, grain, feed, and food processing systems. AGI has manufacturing facilities in Canada, the United States, the United Kingdom, Brazil, India, France and Italy and distributes its product globally.
This press release may contain forward-looking statements and information [collectively, "forward-looking information"] within the meaning of applicable securities laws that reflect our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words "anticipate", "believe", "continue", "could", "expects", "intend", "plans", "postulates", "predict", "will" or similar expressions suggesting future conditions or events or the negative of these terms are generally intended to identify forward-looking information. Forward-looking information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which it is based will occur. Such forward-looking information reflects our current beliefs and is based on information currently available to us, including certain key expectations and assumptions. Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking information, including changes in international, national and local macroeconomic and business conditions, as well as sociopolitical conditions in certain local or regional markets, weather patterns, crop planting, crop yields, crop conditions, the timing of harvest and conditions during harvest, the ability of management to execute the Company's business plan, seasonality, industry cyclicality, volatility of production costs, agricultural commodity prices, the cost and availability of capital, currency exchange and interest rates, the availability of credit for customers, competition, AGI's failure to achieve the expected benefits of recent acquisitions including to realize anticipated synergies and margin improvements; and changes in trade relations between the countries in which the Company does business including between Canada and the United States. These risks and uncertainties are described under "Risks and Uncertainties" in our MD&A, our annual MD&A and in our most recently filed Annual Information Form, all of which are available under the Company's profile on SEDAR [www.sedar.com]. In addition, the extent and duration of the effects and impacts of the recent coronavirus disease (COVID-19) outbreak on AGI's business and the global economy and markets are largely unknown at this time and could cause AGI's actual results to differ materially from the forward-looking statements contained in this news release. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking information. We cannot assure readers that actual results will be consistent with this forward-looking information. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information included in this press release is made as of the date of this press release and AGI undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
SOURCE Ag Growth International Inc. (AGI)
For further information: Investor Relations, Steve Sommerfeld, 204-489-1855, [email protected]