WINNIPEG, March 20, 2020 /CNW/ - Ag Growth
International Inc. ("AGI") (TSX: AFN) today announced it has
amended and extended its credit facility with a syndicate of five
Canadian Banks, led by the Canadian Imperial Bank of Commerce. The
extension process commenced in earnest in January 2020, with the objective of improving the
Company's terms and conditions in a favourable banking environment.
The extension of the facility to March
2025, and the amendment of certain terms including an
improved pricing grid and an increase to the maximum senior debt
leverage ratio to 3.75 for the balance of 2020, take on an
increased importance with the recent outbreak of COVID-19. For
reference, AGI's senior debt leverage ratio as at its most recently
published quarter-end, September 30,
2019, was 2.78x. AGI would like to thank CIBC as well as TD
Bank, National Bank of Canada,
HSBC Bank Canada and the Bank of Nova
Scotia, as well as our partners at Prudential Capital, for
their continuing support.
"We would like to thank our partners at each of the banks for
their ongoing support", said Tim
Close, President and CEO of AGI. "While the work on this
amendment was started prior to the COVID-19 crisis and was part of
ongoing efforts to optimize our business to facilitate our
strategies, this improved facility provides additional flexibility
for our business as we move through a very unusual year. As
we worked through this amendment and the COVID crisis escalated,
our banks have continued to express their strong support."
AGI Company Profile
AGI is a leading provider of solutions for the global food
infrastructure, including seed, fertilizer, grain, feed, and food
processing systems. AGI has manufacturing facilities in
Canada, the United States, the United Kingdom, Brazil, India, France
and Italy and distributes its
product globally.
Further information can be found in the disclosure documents
filed by AGI with the securities regulatory authorities, available
at www.sedar.com and on AGI's website www.aggrowth.com.
FORWARD-LOOKING INFORMATION
This press release may contain forward-looking statements and
information [collectively, "forward-looking information"] within
the meaning of applicable securities laws that reflect our
expectations regarding the future growth, results of operations,
performance, business prospects, and opportunities of the Company.
All information and statements contained herein that are not
clearly historical in nature constitute forward-looking
information, and the words "anticipate", "believe", "continue",
"could", "expects", "intend", "plans", "postulates", "predict",
"will" or similar expressions suggesting future conditions or
events or the negative of these terms are generally intended to
identify forward-looking information. Forward-looking information
involves known or unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information. Undue
reliance should not be placed on forward-looking information, as
there can be no assurance that the plans, intentions or
expectations upon which it is based will occur. Such
forward-looking information reflects our current beliefs and is
based on information currently available to us, including certain
key expectations and assumptions. Forward-looking information
involves significant risks and uncertainties. A number of factors
could cause actual results to differ materially from results
discussed in the forward-looking information, including changes in
international, national and local macroeconomic and business
conditions, as well as sociopolitical conditions in certain local
or regional markets, weather patterns, crop planting, crop yields,
crop conditions, the timing of harvest and conditions during
harvest, the ability of management to execute the Company's
business plan, seasonality, industry cyclicality, volatility of
production costs, agricultural commodity prices, the cost and
availability of capital, currency exchange and interest rates, the
availability of credit for customers, competition, AGI's failure to
achieve the expected benefits of recent acquisitions including to
realize anticipated synergies and margin improvements; and changes
in trade relations between the countries in which the Company does
business including between Canada
and the United States. These risks
and uncertainties are described under "Risks and Uncertainties" in
our MD&A, our annual MD&A and in our most recently filed
Annual Information Form, all of which are available under the
Company's profile on SEDAR [www.sedar.com]. In addition, the extent
and duration of the effects and impacts of the recent coronavirus
disease (COVID-19) outbreak on AGI's business and the global
economy and markets are largely unknown at this time and could
cause AGI's actual results to differ materially from the
forward-looking statements contained in this news release. These
factors should be considered carefully, and readers should not
place undue reliance on the Company's forward-looking information.
We cannot assure readers that actual results will be consistent
with this forward-looking information. The forward-looking
information contained herein is expressly qualified in its entirety
by this cautionary statement. The forward-looking information
included in this press release is made as of the date of this press
release and AGI undertakes no obligation to publicly update such
forward-looking information to reflect new information, subsequent
events or otherwise unless so required by applicable securities
laws.
SOURCE Ag Growth International Inc. (AGI)