Ag Growth adds C$100 million to credit facility, eases covenants

By Wendy Van Sickle

Columbus, Ohio, April 29 – Ag Growth International Inc. increased its credit facility with a syndicate of Canadian Banks by about C$100 million, according to a press release.

The expansion includes a C$50 million increase to the company’s senior revolving facility as well as the creation of a separate C$50 million one-year revolver to provide increased short-term flexibility during the Covid-19 crisis.

Ag Growth's senior credit facility now totals approximately C$575 million.

Additionally, there is a C$100 million accordion.

At March 31, Ag Growth had drawn $345 million under the senior credit facility.

The company also amended the credit facility to include a suspension of all financial covenant requirements for the six-month period ending Oct. 31, 2020 as well as the ability to normalize Q1 2020 and Q2 2020 financial results for certain Covid-19 impacts when calculating trailing EBITDA in future covenant calculations.

After that, the minimum leverage ratio covenant will return to 3.75x up to and including the calculation as at March 31, 2021.

The minimum leverage ratio decreases to 3.5x for the quarter ended June 30, 2021 and returns to 3.25x thereafter.

During the financial covenant suspension period, Ag Growth is subject to a minimum liquidity covenant.

The maturity date remains March 20, 2025.

Ag Growth International is based in Winnipeg, Man., and makes equipment solutions for agriculture bulk commodities.

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