SunOpta Inc. (the Company), a leading global company focused on natural, organic and specialty foods, announced that its Corporation B.V. (TOC) and certain international subsidiaries of TOC (Borrowers) have successfully entered into a Multi-purpose Facilities Agreement (Club Facility) with ING Bank N.V. and ABN Amro Bank N.V. (Lenders). The Agreement expands the Group's borrowing capacity and provides for a total of EURO48 million in financing via two main facilities, a EURO45M revolving credit facility covering working capital needs, and EURO3 million pre-settlement facility covering currency hedging requirements.
The new EURO45M revolving credit facility replaces an existing EURO35M credit facility with ING Bank N.V., and is secured by the working capital of the Borrowers. The increased facility size will be used to support growth within the Company's international foods operations. There is no set maturity to the Club Facility and the limit can be extended or adjusted based on the needs of the business based upon approval of the Lenders. Initial interest rates under the Club Facility are expected to be similar to the previous credit facility as the loan margin and 'cost of funds' pricing is comparable.
"This expanded credit facility will allow the International Foods Group to continue to grow their global sourcing, supply and processing capabilities which are of strategic importance to SunOpta's integrated natural and organic foods platform," commented Rob McKeracher, vice president and chief financial officer. "We appreciate the support from our international lenders, which reflects the strength of our relationships with our banks and the solid fundamentals of our business."