Alliance Grain Traders Inc. Announces Pricing of $125 Million Senior Secured
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SYMBOL: TSX: AGT
REGINA, Feb. 7, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT")announced
today that it has priced its previously announced offering of $125 million in
aggregate principal amount of senior secured second lien notes due 2018 (the
"Notes"). The Notes will bear interest at an annual rate of 9% and will be
sold at a price of 99.50% of principal for gross proceeds of $124,375,000.
AGT expects to close the offering of the Notes on February 14, 2013, subject
to the satisfaction of customary closing conditions.
The Notes were offered in all provinces of Canada and in the United States by
a syndicate of underwriters led by Scotia Capital Inc., CIBC World Markets
Inc. and GMP Securities L.P., and including AltaCorp Capital Inc. and
Canaccord Genuity Corp., by way of a private placement under applicable
"We are pleased to announce that our senior secured note offering is being
well received by investors. This private placement allows us to extend the
term of a portion of our debt to five years. This provides additional
certainty on our balance sheet for both duration and interest rates when we
combine the three year facilities of $300 million we recently announced for
Canada, the U.S. and Australia with the new $125 million five year notes,"
said Mr. Murad Al-Katib, President and CEO of AGT. "This gives us the capital
to execute our business plan to expand the utilization our global asset base,
commercialize our new pulses based food ingredient platform and seek to drive
earnings and value for our shareholders and bondholders."
"Access to capital, especially in difficult credit environments, is a
necessity in our business. We will continue to implement a vigilant management
program focused on boosting our asset utilization and managing our working
capital. Demand for pulses and staple foods remains strong in our traditional
markets and we see great potential in the pulses ingredient markets to supply
our products to the food, feed and petfood markets," added Mr. Huseyin Arslan,
Executive Chairman of the AGT Board. "We look forward to the opportunity to
deliver good progress towards achieving our global objectives through
developing opportunities from all of our geographies."
AGT intends to apply the net proceeds of the proposed offering to repay
indebtedness under certain existing credit facilities, including certain
revolving credit indebtedness that will be available for future reborrowings
that may be used for general corporate purposes.
The Notes will not be qualified for distribution to the public under the
securities laws of any province or territory of Canada and may not be offered
or sold in Canada, directly or indirectly, other than pursuant to applicable
private placement exemptions. The Notes have not and will not be registered
under the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable exemption from
the registration requirements of such Act. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy the Notes
in any jurisdiction.
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, merchandising
and sales offices in the U.K., the Netherlands and Spain and origination
offices in Russia, 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
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 27,
2012 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.
Investor Relations Omer Al-Katib (306) 244-1318 firstname.lastname@example.org
SOURCE: Alliance Grain Traders Inc.
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-0- Feb/08/2013 05:57 GMT
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