MISSISSAUGA, ON – Maple Leaf Foods Inc. (“Maple Leaf” or the “Company”) (TSX: MFI) announced today that it has closed a $2 billion funding arrangement with its existing banking syndicate. The new credit facility consists of an unsecured committed revolving line of credit and two unsecured committed term facilities. The size and unsecured structure of the new credit facility provides the Company with enhanced liquidity and financial flexibility.
“We are very pleased with our new credit facility and the strong and continued support received from our banking partners,” said Debbie Simpson, Chief Financial Officer. “This new facility provides us increased capacity to fund strategic growth initiatives, a key step towards achieving our financial and business goals.”
The $1.3 billion unsecured committed revolving line of credit matures April 30, 2024, and the two unsecured committed term facilities of US$265.0 million and CDN$350.0 million, mature April 30, 2024, and April 30, 2023, respectively. The new credit facility refinances and replaces the Company’s existing $400.0 million and $250.0 million credit facilities, which mature on October 19, 2021, and November 7, 2019, respectively.
The new facility bears interest based on short-term interest rates and is intended to meet the Company’s funding requirements for investment in the construction of its two new recently announced manufacturing facilities in London, Ontario, and Shelbyville, Indiana, in addition to providing appropriate liquidity levels for the Company and general corporate purposes.
The lending syndicate for the new facility comprised nine financial institutions with BMO Capital Markets acting as Sole Book Runner and BMO Capital Markets, Scotiabank, RBC, CIBC, and Rabobank Canada as Co-Lead Arrangers. Four additional lenders participated.
This document contains “forward-looking information” within the meaning of applicable securities law. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which the Company operates, as well as beliefs and assumptions made by Management of the Company. Such statements include, but are not limited to, statements with respect to objectives and goals, in addition to statements with respect to beliefs, plans, objectives, expectations, anticipations, estimates, and intentions. Specific forward-looking information in this document includes, but is not limited to, statements with respect to: construction of new manufacturing facilities, source of funds for ongoing business requirements; capital investments and expectations regarding capital expenditures. Words such as “expect”, “anticipate”, “intend”, “may”, “will”, “plan”, “believe”, “seek”, “estimate”, and variations of such words and similar expressions are intended to identify such forward-looking information. These statements are not guarantees of future performance and involve assumptions, risks, and uncertainties that are difficult to predict, including among other things: the impact of the Company’s debt service and compliance with debt covenants and other. Additional factors that could cause actual results or outcomes to differ materially from the results expressed, implied or forecasted by the forward-looking statements are discussed more fully in the Company’s filings made with the Canadian securities regulators including in the section entitled “Risk Factors” in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2018. All of such filings are available on SEDAR at www.sedar.com.
The Company does not intend to, and the Company disclaims any obligation to, update any forward-looking statements (including any financial outlooks), whether written or oral, or whether as a result of new information, future events or otherwise, except as required by law.
About Maple Leaf Foods
Maple Leaf Foods Inc. is a producer of food products under leading brands including Maple Leaf®, Maple Leaf Prime®, Maple Leaf Natural Selections®, Schneiders®, Schneiders® Country Naturals®, Mina®, Greenfield Natural Meat Co.™, LightlifeTM, Field Roast Grain Meat Co.™ and Swift®. Maple Leaf employs approximately 12,500 people and does business in Canada, the U.S. and Asia. The Company is headquartered in Mississauga, Ontario and its shares trade on the Toronto Stock Exchange under the ticker symbol MFI.