Village Farms International Announces Extension and Amendments of Credit Facilities

TRADING SYMBOL: The Toronto Stock Exchange/OTCQX:
Village Farms International, Inc. – VFF/VFFIF

 

VANCOUVER, March 28, 2016 /CNW/ - Village Farms International, Inc. (the "Company") (TSX: VFF) (OTC:VFFIF) announced today it extended its existing credit facilities with both its term and operating loan lenders. The Company extended its existing long-term debt facility to May 1, 2021 with an amended 15-year amortization period and pricing matrix. The new amortization will reduce the Company's principal payments to approximately US$3,000,000 per year from the current US$4,000,000 per year. The Company will also be extending its existing operating loan facility to five years from the closing date with modified financial covenants, which are more favorable for the Company moving forward. The availability under the new operating loan will increase to CA$13,000,000 from the current CA$10,000,000.  The new operating loan is expected to close in the next 30 to 45 days. 

Stephen Ruffini, Chief Financial Officer, stated "We are pleased with the terms and maturity dates of both our extended credit facilities. We are grateful for the continued support of our lenders – Farm Credit of Canada and BMO Bank of Montreal. Both institutions have been very supportive of Village Farms after our 2012 hail storm and have reflected our improved results in the new credit terms.  We look forward to our ongoing relationships with both lenders." 

About Village Farms

Village Farms 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 located in British Columbia and Texas. 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. Since its inception, Village Farms has been guided by sustainable growing methods and producing vegetables 365 days a year from its facilities that are healthier for people and the planet. Village Farms is Good for the Earth^®.

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, industry performance and trends and capital availability. 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 Canadian 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 year ended December 31, 2015, 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.

Stephen C. Ruffini, Executive Vice President and Chief Financial Officer, Village Farms International, Inc., [phone] ext 340