SunOpta Enters Into an Extension of Its $360 Million Revolving Asset-Based Credit Facility
January 30 2020 - 7:30AM
Business Wire
SunOpta Inc. ("SunOpta" or the “Company”) (Nasdaq:STKL)
(TSX:SOY), a leading global company focused on plant-based foods
and beverages, fruit-based foods and beverages, and organic
ingredient sourcing announced today that it has entered into an
extension of its senior secured asset-based revolving credit
facility in the maximum aggregate principal amount of $360 million,
subject to the borrowing base. The extension moves the maturity
date for the revolving tranches to March 31, 2022, while the
maturity date for the FILO tranche will be set at June 30, 2020 to
coincide with the date of the final amortization payment thereof.
The credit facility continues to be used to support the working
capital and general corporate needs of SunOpta’s global operations,
in addition to funding strategic initiatives.
“We are pleased with the extension of the credit facility and
appreciate the support of our banking partners as we continue to
execute our strategic plans to deliver improved profit
performance,” said Scott Huckins, Chief Financial Officer of
SunOpta. “The extended credit facility provides enhanced
flexibility and increased liquidity to support our operational
initiatives. We have many high return projects, especially in our
plant-based beverage platform, and this new credit facility will
allow us to continue to drive double-digit growth in beverages as
we seek to double this business over the coming years.”
Borrowings under the credit facility bear interest based on
various reference rates including LIBOR plus an applicable margin.
The applicable margin in the new facility ranges from 1.25% to
1.75% for loans bearing interest based on LIBOR, plus, if
applicable, an additional 0.50% when the Company’s total leverage
ratio exceeds an agreed threshold. The applicable margin is set
quarterly based on average borrowing availability. The obligations
of the borrowers under the facility are guaranteed by substantially
all of SunOpta’s subsidiaries and, subject to certain exceptions,
such obligations are secured by first priority liens on
substantially all assets of SunOpta and the other borrowers and
guarantors. The credit facility contains customary covenants and
borrowing availability requirements. The facility is provided by a
syndicate of banks, including Bank of America, N.A., Rabobank
Nederland, Canadian Branch, Bank of Montreal, JP Morgan Chase Bank,
N.A., and Wells Fargo Bank, National Association.
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on plant-based
foods and beverages, fruit-based foods and beverages, and organic
ingredient sourcing. SunOpta specializes in the sourcing,
processing and packaging of organic, natural and non-GMO food
products, integrated from seed through packaged products; with a
focus on strategic vertically integrated business models.
Forward-Looking Statements
Certain statements included in this press release may be
considered "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. These forward-looking
statements include, but are not limited to, the Company’s ability
to consummate the extension of the senior secured asset-based
revolving credit facility, and the definitive documentation
thereof, as planned and described herein. Terms and phrases such as
“will”, “may”, "expects", “intends”, "continue" and other similar
terms and phrases are intended to identify these forward-looking
statements. Forward-looking statements are based on information
available to us on the date of this release and are based on
estimates and assumptions made by the Company in light of our
experience and perception of historical trends, current conditions
and expected future developments as well as other factors we
believe are appropriate in the circumstances. The Company makes no
representation that reasonable business people in possession of the
same information would reach the same conclusions. Whether actual
timing and results will agree with expectations and predications of
the Company is subject to many risks and uncertainties including
adverse fluctuations in applicable interest rates, the risk of
potential covenant breaches under the credit facility and other
factors that might limit or affect the expected benefits of
improved borrowing rates and increased availability of funds, as
well as other risks described from time to time under "Risk
Factors" in our Annual Report on Form 10-K and its Quarterly
Reports on Form 10-Q (available at www.sec.gov). Consequently, all
forward-looking statements made herein are qualified by these
cautionary statements and there can be no assurance that the actual
results or developments that we anticipate will be realized.
Source: SunOpta Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20200130005075/en/
Scott Van Winkle ICR 617-956-6736 scott.vanwinkle@icrinc.com
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