-Facility to support working capital and strategic growth initiatives-
WINNIPEG, Jan. 26, 2012 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") announced that it has entered into agreements for a new combined $107 million secured credit facility with HSBC Bank Canada and Farm Credit Canada. The new credit facility will support working capital and potential future acquisitions consistent with the Company's stated growth strategy.
"This line of credit gives us additional flexibility and an enhanced capital structure as we pursue strategic growth opportunities," said Joel Horn, president and CEO of Legumex Walker. "We are committed to putting our capital to work as we expand our sourcing, processing, and distribution networks in both special crops and oilseeds."
The credit facility is secured by a first charge against certain assets of the company. The terms of the credit facility are consistent with market standards for the industry and include customary conditions, covenants, and representations and warranties.
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, with nine processing facilities strategically located in key growing regions throughout Saskatchewan and Manitoba, a 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, a company that is constructing a canola oilseed processing facility in Washington State.
This press release contains "forward‐looking information" within the meaning of Canadian securities laws, which may include, but are not limited to statements relating to the availability and sufficiency of the credit facility for contemplated uses. Such forward‐looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including the assumption that the Company will continue to meet all relevant covenants in the credit agreements and the risk that the credit facility may not be available or sufficient to fund the Company's requirements and those risks set out in the final prospectus of Legumex Walker dated June 30, 2011 available on sedar.com. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.
For further information:
Manager of Investor Relations - Legumex Walker Inc.
(416) 815-0700 ext. 257