TSX: MFI
www.mapleleaffoods.com
MISSISSAUGA, ON, April 30, 2019 /CNW/ - Maple Leaf Foods Inc.
("Maple Leaf" or the "Company") (TSX: MFI) announced today that it
has closed a $2 billion funding
arrangement with its existing banking syndicate. The new credit
facility consists of an unsecured committed revolving line of
credit and two unsecured committed term facilities. The size
and unsecured structure of the new credit facility provides the
Company with enhanced liquidity and financial flexibility.
"We are very pleased with our new credit facility and the strong
and continued support received from our banking partners," said
Debbie Simpson, Chief Financial
Officer. "This new facility provides us increased capacity to fund
strategic growth initiatives, a key step towards achieving our
financial and business goals."
The $1.3 billion unsecured
committed revolving line of credit matures April 30, 2024, and the two unsecured committed
term facilities of US$265.0 million
and CDN$350.0 million, mature
April 30, 2024, and April 30, 2023, respectively. The new credit
facility refinances and replaces the Company's existing
$400.0 million and $250.0 million credit facilities, which mature on
October 19, 2021, and November 7, 2019, respectively.
The new facility bears interest based on short-term interest
rates and is intended to meet the Company's funding requirements
for investment in the construction of its two new recently
announced manufacturing facilities in London, Ontario, and Shelbyville, Indiana, in addition to providing
appropriate liquidity levels for the Company and general corporate
purposes.
The lending syndicate for the new facility comprised nine
financial institutions with BMO Capital Markets acting as Sole Book
Runner and BMO Capital Markets, Scotiabank, RBC, CIBC, and Rabobank
Canada as Co-Lead Arrangers. Four additional lenders
participated.
Forward–Looking Statements
This document contains "forward-looking information" within the
meaning of applicable securities law. These statements are based on
current expectations, estimates, forecasts, and projections about
the industries in which the Company operates, as well as beliefs
and assumptions made by Management of the Company. Such statements
include, but are not limited to, statements with respect to
objectives and goals, in addition to statements with respect to
beliefs, plans, objectives, expectations, anticipations, estimates,
and intentions. Specific forward-looking information in this
document includes, but is not limited to, statements with respect
to: construction of new manufacturing facilities, source of funds
for ongoing business requirements; capital investments and
expectations regarding capital expenditures. Words such as
"expect", "anticipate", "intend", "may", "will", "plan", "believe",
"seek", "estimate", and variations of such words and similar
expressions are intended to identify such forward-looking
information. These statements are not guarantees of future
performance and involve assumptions, risks, and uncertainties that
are difficult to predict, including among other things: the impact
of the Company's debt service and compliance with debt covenants
and other. Additional factors that could cause actual results or
outcomes to differ materially from the results expressed, implied
or forecasted by the forward-looking statements are discussed more
fully in the Company's filings made with the Canadian securities
regulators including in the section entitled "Risk Factors" in the
Company's Management's Discussion and Analysis for the year ended
December 31, 2018. All of such
filings are available on SEDAR at www.sedar.com.
The Company does not intend to, and the Company disclaims any
obligation to, update any forward-looking statements (including any
financial outlooks), whether written or oral, or whether as a
result of new information, future events or otherwise, except as
required by law.
About Maple Leaf Foods
Maple Leaf Foods Inc. is a producer of food products under
leading brands including Maple Leaf®, Maple Leaf Prime®, Maple Leaf
Natural Selections®, Schneiders®, Schneiders® Country Naturals®,
Mina®, Greenfield Natural Meat Co.™, LightlifeTM, Field
Roast Grain Meat Co.™ and Swift®. Maple Leaf employs approximately
12,500 people and does business in Canada, the U.S. and Asia. The Company is headquartered in
Mississauga, Ontario and its
shares trade on the Toronto Stock Exchange under the ticker symbol
MFI.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/maple-leaf-foods-announces-new-2-billion-credit-facility-300841253.html
SOURCE Maple Leaf Foods Inc.