SYMBOL: TSX: AGT
Jan. 24, 2013
/CNW/ - Alliance Grain Traders Inc. ("
") announced today that its wholly-owned subsidiary, Alliance Pulse Processors Inc. ("
"), has entered into an aggregate amount of
credit facilities with The Bank of
and a syndicate of six other lenders: HSBC Bank Canada, Canadian Imperial Bank of Commerce, Farm Credit Canada, Alberta Treasury Branches, Export Development Canada and ICICI Bank Canada. The credit facilities includes an aggregate amount of
senior secured credit facilities and a
accordion that increases the size of the facilities to
"We are pleased to announce these new credit facilities, which we feel continues to show the strength of our business and balance sheet. The initiatives we have undertaken to strengthen our business in this difficult credit environment and the success we have been able to demonstrate based on their implementation have allowed us to continue to work with existing lenders and expand that group to include new partners to arrange this new financing," said Mr.
, President and CEO of AGT. "We will continue to use our credit facilities as appropriate to drive our asset and global growth plans and build on the confidence our lenders have shown in our business, our management team and our strategy. AGT is focused on the implementation of our strategy to utilize our existing asset base to develop sales in our staple foods and ingredients business. We have capital, markets and capacity. That gives us the capability to drive earnings and value for our shareholders."
"As a company, we have been focused on strengthening our credit availability from our lenders around the globe, using our strong balance sheet to satisfy our borrowing requirements. These new credit facilities continue to refine and solidify our working capital and financing requirements in
, the U.S. and
. Our Management will continue to focus on efficient management of our working capital. Inventory turns, receivable collection and reduction of AGT's overall cash cycle are the subjects of many management initiatives. Availability of longer-term working capital and financing is an essential element of our plan to boost utilization of our global footprint, leading to earnings improvements. We are pleased with our partners on these facilities and welcome our new lending partners," added Mr.
, Executive Chairman of AGT.
The credit facilities will be used for general corporate purposes as well as to consolidate APP's existing bank credit facilities and contains financing tranches that may be utilized for future permitted acquisitions and capital expenditures as set forth in the credit facilities. The new facilities have maturity dates of January 24, 2016 which may be extended at the request of APP for one-year periods with the consent of the syndicate and are subject to certain other terms and conditions.