TORONTO, July 30, 2012 (GLOBE NEWSWIRE) -- SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq:STKL) (TSX:SOY), a leading global natural and organic foods company, today announced that it has entered into an amended and restated credit agreement (the Amended Agreement) with a syndicate of lenders led by The Bank of Montreal, as agent. The Amended Agreement provides for additional borrowing capacity and reduced pricing over its four year term, plus an accordion feature to further support the Company's future growth objectives.
The Amended Agreement provides secured revolving credit facilities of $175 million, including $10 million in Canadian funds. The Amended Agreement replaces current revolving facilities of $125 million and term facilities totalling $21 million, and also provides for an additional $50 million in availability upon the exercise of an uncommitted accordion feature. The increase in funds available will be used to support the Company's growth objectives throughout the term of the agreement.
Interest on borrowings under this facility accrue based on various reference rates including LIBOR (London Interbank Offered Rate), plus an applicable margin. The applicable margin is set quarterly based on average borrowing availability and will initially be set at 2.25%, as compared to the applicable margin under the previous syndicated agreement of 3.50%. The applicable margin under the Amended Agreement can range from 1.75% to 2.50%, and represents a substantial improvement in pricing versus the previous facility.
Robert McKeracher, Vice President and Chief Financial Officer commented, "We are very pleased with the continued strong support from our syndicate of lenders. We believe this facility will provide improved borrowing costs, and when combined with positive cash flows from operations, will provide increased financial flexibility and capital resources to support both internal growth projects and future potential acquisitions."
The Company's syndicate of lenders includes The Bank of Montreal, Rabobank Nederland Canadian Branch, Export Development Canada and the Canadian Imperial Bank of Commerce. The facilities support the core North American food operations and are collateralized by substantially all of its assets and substantially all the assets of certain subsidiaries in which a security interest may lawfully be granted.
Additional details included in the Agreement will be set forth in the Company's Form 8-K to be filed with the SEC and will be accessible after filing in the investor section of www.sunopta.com.
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on natural, organic and specialty foods products. The Company specializes in sourcing, processing and packaging of natural and organic food products, integrated from seed through packaged products; with a focus on strategically vertically integrated business models. The Company's core natural and organic food operations focus on value-added grains, fiber and fruit based product offerings, supported by a global infrastructure. The Company has two non-core holdings, a 66.2% ownership position in Opta Minerals Inc., listed on the Toronto Stock Exchange, a producer, distributor, and recycler of environmentally friendly industrial materials; and a minority ownership position in Mascoma Corporation, an innovative biofuels company.
The SunOpta Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3958
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, management's expectations regarding the expected benefits of improved borrowing rates and increased availability of funds to support future growth. Terms and phrases such as "further support", "believe", "will provide" 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 its experience and its perception of historical trends, current conditions and expected future developments as well as other factors the Company believes are appropriate in the circumstances. Whether actual timing and results will be consistent with expectations and predications of the Company is subject to many risks and uncertainties that could cause actual results to differ materially from the company's expectations and predictions, including adverse fluctuations in applicable reference rates, risks of potential covenant breaches under the Amended Agreement and other factors that might limit or affect the expected benefits of improved borrowing rates and increased availability of funds as those risks detailed under "Risk Factors" in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov/" target="_top" rel="nofollow">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 anticipated by the Company will be realized.