TORONTO, Feb. 14, 2019 /CNW/ - Ceres Global Ag Corp.
(TSX:CRP.TO) ("Ceres" or the "Corporation") announced today
that it has entered into a fourth amended and restated credit
agreement led by Macquarie Bank Limited, as administrative agent on
behalf of a syndicate group of lenders which includes Bank of
Montreal and Cooperatieve Rabo
bank U.A. (the "New Credit Agreement"). The New Credit Agreement
increases the amount of the revolving facility available to Ceres
from U.S.$67.5 million to
U.S.$80 million, with the potential
to access an accordion feature that would provide an additional
U.S.$20 million. The interest rate
under the New Credit Agreement reflects a reduction of 50 basis
points from Ceres' prior revolving facility. The revolving
facility matures on February 13,
2020.
"The increased borrowing capacity under the New Credit Agreement
is significant for Ceres as we continue to grow our volumes and add
more product lines to our portfolio," said Kyle Egbert, Chief Executive Officer for Ceres.
"In addition to providing Ceres with additional liquidity and
flexibility for our balance sheet, the more favorable interest rate
will help reduce costs and provide capital for future growth
opportunities, including potential acquisitions."
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 six locations, Duluth,
MN; Minneapolis, MN;
Shakopee, MN; Northgate,
Saskatchewan; and Port Colborne, Ontario; Savage, MN (Savage Riverport, LLC) 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 legislation and United States 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 the plans, costs, timing and capital for the further
development of the Northgate Commodities Logistics Centre,
expectations or projections about the future, strategies and goals
for growth, expected and future cash flows, costs, planned capital
expenditures, regulatory change, general economic political and
market conditions anticipated capital projects, construction and
completion dates, operating and financial results, critical
accounting estimates, the expected financial and operational
consequences of future commitments. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate",
"believes", "may have implications" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur", or
"be achieved". 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 December 31, 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. Factors that could cause actual results to
vary materially from results anticipated by such forward-looking
information include, among others, risks related to weather,
politics and governments, changes in environmental and other laws
and regulations, competitive factors in agricultural, food
processing and feed sectors, construction and completion of capital
projects, labour, equipment and material costs, access to capital
markets, interest and currency exchange rates, technological
developments, global and local economic conditions, the ability of
Ceres to successfully implement strategic initiatives and whether
such strategic initiatives will yield the expected benefits, the
operating performance of the Corporation's assets, the availability
and price of commodities and regulatory environment, processes and
decisions. Although Ceres has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
information, there may be other factors that cause actions, events
or results that are not anticipated, estimated or intended. 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. Ceres
undertakes no obligation to update forward-looking information
if circumstances or management's estimates or opinions
should change, except as required by applicable securities
laws. The reader is cautioned not to place undue reliance on
forward-looking information.
SOURCE Ceres Global Ag Corp.