Alliance Grain Traders Inc. Announces Pricing of $125 Million Senior Secured Notes NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES 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 securities laws. "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 semolina. Cautionary Statements 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. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/February2013/08/c4154.html CO: Alliance Grain Traders Inc. ST: Saskatchewan NI: AGR FIN -0- Feb/08/2013 05:57 GMT
Alliance Grain Traders Inc. Announces Pricing of $125 Million Senior Secured Notes
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