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Agricore gets $138 million term loan B
By Sara Rosenberg
New York, Sept. 6 - Agricore United closed on a new $138 million senior secured term loan B due September 2013, according to a company news release.
Scotia Capital acted as the lead arranger on the deal.
The term loan B carries an interest rate of Libor plus 175 basis points.
Amortization on the loan is quarterly installments of $345,000 with the balance due at maturity.
Of the total term B amount, $50 million is being used to repay a bridge loan that was obtained in connection with the acquisition of Hi-Pro Feeds, and $88 million is being used to repay the company's existing C$83 million of 9.65% fixed-rate term loan maturing Nov. 30, 2007 and for general corporate purposes.
"We're pleased with both the U.S. institutional market's interest in participating in this facility as well as the level of interest expressed by our existing term lenders," said Brian Hayward, chief executive officer, in the release.
"Although the initial commitments from the institutional lenders came in at almost twice the amount we were seeking to borrow, we had specific needs for the proceeds and limited our borrowing to the level necessary for the company's purposes."
Concurrent with the term loan B, the company also arranged for a three-year revolver with its existing syndicate of banks to replace a 364-day revolver that was set to mature on Feb. 26, 2007.
The new revolver increases the seasonal limit between January 1 and May 31 to C$525 million from C$475 million and reduces the carrying cost to between prime and prime plus 90 basis points, depending on the company's fixed-charge ratio.
Agricore is a Winnipeg, Manitoba-based agri-business.
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