Legumex Walker Announces Integration and Expansion of HSBC Credit Facilities
WINNIPEG, Oct. 2, 2013 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company")
today announced that it successfully closed the integration of its credit
facilities with HSBC Bank Canada ("HSBC") and HSBC Bank USA ("HBUS") effective
September 30, 2013 and expanded its operating facilities with the Honkong
Shanghai Banking Corporation Limited ("HSBC Hongkong"). (All figures are in
Canadian dollars unless otherwise stated.)
The Company will continue to access a US$10 million operating loan facility
with HBUS and a $51 million credit facility with HSBC. However, the
borrowing base is now calculated on a North American basis consistent with the
HSBC operating facility, which simplifies the Company's ability to access the
combined credit facilities of about $61 million through HSBC. The HBUS
facility continues to carry an interest rate based on 30-day LIBOR plus three
percent, and the Canadian facility continues to carry interest at HSBC's prime
lending rate plus 0.5 percent on Canadian advances and HSBC's U.S. base rate
plus 0.5 percent on U.S.-dollar advances.
"Integrating the management of our credit facilities with HSBC in Canada and
the U.S. will allow us to more easily finance our working capital needs as we
head into the fourth quarter," said Joel Horn, President and Chief Executive
Officer, Legumex Walker Inc. "The realignment of the facilities provides us
with more financial flexibility to support our operations on both sides of the
In addition, HSBC Hongkong increased the operating facility available to the
Company's wholly-owned subsidiary, Legumex Walker China Limited ("LW China"),
from US$4.75 million to US$7.75 million and added a US$2 million Invoice
Discounting and Factoring Agreement priced at 2.75 percent over three-month
LIBOR. "The expansion of the HSBC Hongkong facility provides self-sustaining
support for the ongoing growth in LW China's operations, including the
commissioning of a new processing plant in Dalian, China during the fourth
quarter," Mr. Horn added.
The Company has other credit facilities which are described in its Management
Discussion and Analysis for the period ended December 31, 2012.
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. Legumex Walker has 14 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 85 percent interest in Pacific Coast Canola, LLC, which operates the first
and only commercial-scale canola oilseed processing facility west of the Rocky
Cautionary Note on Forward-looking Statements
This press release contains certain forward-looking statements which include
statements with respect to the future utilization of the Company's 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 the Company will continue to satisfy the covenants under the
credit facilities. Such risks and uncertainties include, among others, the
risk that the Company 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.
INVESTOR & MEDIA RELATIONS:
Marin Landis Investor Relations - Legumex Walker email@example.com
Lawrence Chamberlain TMX Equicom firstname.lastname@example.org (416) 815-0700
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