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 border." 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 Mountains. 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 firstname.lastname@example.org (206) 535-2427 Lawrence Chamberlain TMX Equicom email@example.com (416) 815-0700 ext. 257 To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/October2013/02/c6462.html CO: Legumex Walker Inc. ST: Manitoba NI: AGR -0- Oct/02/2013 11:00 GMT
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Legumex Walker Announces Integration and Expansion of HSBC Credit Facilities
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