TORONTO, Nov. 19, 2018 /CNW/ - Ceres (TSX: CRP) ("Ceres"
or the "Corporation") announced today that it has obtained a
term loan in the principal amount of US$20
million (the "Loan") from Bixby Bridge Fund IV, LLC, (the
"Lender"), based in Northbrook,
IL. A portion of the proceeds of the Loan have been used to
repay all amounts outstanding under the Corporation's $10 million term loan with Macquarie Bank Limited
("Macquarie"). Ceres' revolving credit
facility remains unchanged and continues to be held
by Macquarie. The Loan
is secured primarily by mortgages on Ceres' elevator
facilities, including; one in Northgate, SK, one in
Duluth, MN and two in Minneapolis, MN.
"The refinancing of our term debt provides the
flexibility needed to fund corporate operations and
our near-term expansion," said Kyle Egbert, Chief
Financial Officer of Ceres. "We continue to have a very strong
balance sheet and look forward to adding assets as
part of our overall growth strategy."
Pursuant to the agreed upon conditions of the Loan, Ceres may at
its discretion, repay the balance of the Loan at any time
subject to typical notice requirements. The pricing of the Loan is
a set margin over 30-day Libor. Based on the current 30-day
Libor Rate, the interest payable is
expected to be in the mid to high 7% per annum range over the
four-year term.
An affiliate of the Lender, separate and distinct from the
Lender, holds an indirect, minority, investment in Ceres, and,
therefore, the Lender and/or this affiliate may be a related party
of the Corporation. The Loan was negotiated on arm's length
terms after consideration of other financing alternatives and under
the supervision of members of the Corporation's Board of Directors
who are independent of the Lender.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through our network of commodity logistics centers and team of
industry experts, Ceres procures and provides North American
agricultural commodities & value-added products, industrial
products, fertilizer, energy products and reliable supply chain
logistics services to customers worldwide.
Ceres operates five locations, Duluth,
MN; Minneapolis, MN;
Shakopee, MN; Northgate,
Saskatchewan; and Port Colborne, Ontario, and is headquartered
in Minneapolis, MN. Our facilities
throughout North America have an
aggregate grain and oilseed storage capacity of approximately 29.7
million bushels.
Ceres also has a 50% interest in Savage Riverport LLC, a joint
venture with Consolidated Grain and Barge Co. ("CGB"), a 25%
interest in Stewart Southern Railway Inc., a short-line railway
located in southeast Saskatchewan
with a range of 130 kilometers, and a 17% interest in Canterra Seed
Holdings Ltd, a Canadian-based seed development company.
Cautionary Notice: This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities laws. Forward-looking information may include,
but is not limited to, statements regarding future operations and
results, anticipated business prospects and financial performance
of Ceres and its subsidiaries, including expectations or
projections about the future, strategies and goals for growth,
expected and future cash flows, costs, planned capital
expenditures, general economic and market conditions, anticipated
capital projects. Forward-looking information is based on the
opinions and estimates of management at the date the information is
made, and is based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking information. Key assumptions upon
which such forward-looking information is based are listed in the
"Forward-Looking Information" section of the MD&A for the
period ended September 30, 2018. Many such assumptions
are based on factors and events that are not within the control of
Ceres and there is no assurance they will prove to be correct.
There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such
information.
SOURCE Ceres Global Ag Corp.