Press release from GlobeNewswire (a Nasdaq OMX company)
SunOpta Announces Amended Credit Facility
Tuesday, December 21, 2010
TORONTO, Dec. 21, 2010 (GLOBE NEWSWIRE) -- SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq:STKL) (TSX:SOY), a leading global company focused on natural, organic and specialty foods and natural health products today announced that the Company has successfully entered into an amended and restated credit agreement to refinance long-term debt of $33.2 million which matured on December 20, 2010, with non-revolving term debt facilities of $30 million and an increase of $5 million in revolving facilities. The amended facility supports the Company's North American natural and organic food operations and is held by a syndicate of lenders.
The amended facility provides total borrowing capacity of $135 million including revolving facilities of approximately $105 million and the $30 million of non-revolving term debt facilities. The amended facility also provides for a $30 million increase to the Company's revolving facilities in the event funding is required to support future growth. The amended facility has a maturity of October 30, 2012, consistent with the renewal of existing revolving facilities expiring on the same date.
Interest on borrowings under these facilities accrues at the Company's option based on various reference rates including Canadian or U.S. bank prime plus the applicable margin. The applicable margin is based on certain financial ratios, calculated in accordance with the amended facility. The facilities are collateralized by substantially all of the assets of the Company and subsidiaries in which a security interest may lawfully be granted. Additional details included in the amended facility will be set forth in the Company's Form 8-K to be filed with the SEC, which will be accessible after filing in the investor section of www.sunopta.com.
Eric Davis, Vice President and Chief Financial Officer commented, "This facility will provide improved borrowing rates and additional flexibility versus our previous long-term debt facility. Over the last couple of years we have significantly reduced our total debt via improved earnings, reduced working capital and the sale of non-core assets, and when combined with healthy cash flow from our operations, we believe we are well positioned for future growth."
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on natural, organic and specialty foods and natural health 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 66.4% ownership position in Opta Minerals Inc. (TSX:OPM), 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 "strengthen", "we believe", "improved" 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 the expected benefits of improved borrowing rates and increased availability of funds to support future growth well 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). 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.
CONTACT: SunOpta Inc. Steve Bromley, President & CEO Eric Davis, Vice President & CFO Tony Tavares, Vice President & COO Susan Wiekenkamp, Information Officer 905-455-2528, ext 103 firstname.lastname@example.org www.sunopta.com