WINNIPEG, Jan. 8, 2014 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") today announced that its Pacific Coast Canola (PCC) subsidiary has entered into agreements with Macquarie Bank Limited (Macquarie Bank) that provide additional liquidity of up to US$45 million.
The agreements include: 1) a 3-year US$10 million borrowing facility for working capital purposes, at market interest rates, with annual renewals; 2) a US$15 million hedging line that allows PCC to enter into forward purchase and sales contracts and 3) up to US$20 million for physical grain purchase transactions for canola seed.
"PCC is adding new customers weekly and these new US$45 million facilities significantly expand our ability to leverage our production capacity and capitalize on the high demand for both our canola oil and canola meal," said Joel Horn, President and Chief Executive Officer, Legumex Walker Inc. "PCC's new credit facilities include a US$15 million hedging line that allows us to enter into forward sales contracts with customers while protecting us from commodity price fluctuations."
In addition to the agreement with Macquarie Bank, PCC has an existing US$12M working capital loan from a syndicate of lenders and a continuing trade credit agreement with CHS for the sale of canola meal and canola oil.
A material change report prepared in accordance with Canadian securities laws relating to the transactions described in this release will be available on www.sedar.com within 10 calendar days.
About Legumex Walker Inc.
Legumex Walker is a growth-oriented processor and merchandiser of special crops (sunflower seed, flax and canary seed), pulses (lentils, peas, beans and chickpeas) and canola products. The Company is one of the largest processors of special crops and pulses in Canada. Legumex Walker has 15 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 84 percent interest in Pacific Coast Canola, LLC, which operates the first and only commercial-scale canola oilseed processing facility west of the Rocky Mountains.
Cautionary Note on Forward-looking Statements
This press release contains certain forward-looking statements which include statements with respect to the future availability of PCC's new 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 PCC will continue to satisfy the covenants under the credit facilities. Such risks and uncertainties include, among others, the risk that PCC 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.
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