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.
For further information:
Investor Relations, Omer Al-Katib
Tel: (306) 244-1318