Maple Leaf Foods Secures First Sustainability-Linked Credit Facility in Canada
Terms integrate environmental targets with improved financing
TORONTO, Dec. 11, 2019 /CNW/ - Maple Leaf Foods, Inc. (TSX: MFI, the "Company") has become the first company in Canada to secure sustainability-linked terms for its credit facilities. The Company today signed an amendment to its existing credit facilities to include financing terms that reduce the interest rate on the lending facility as key sustainability targets are met.
These amendments reflect Maple Leaf's goal to create compelling business value through advancing its vision to be the most sustainable protein company on earth. With sustainability core to its business strategy, the Company recently announced that it had become world's first major carbon neutral food company and one of three animal protein companies in the world to set the globally-respected Science-Based Targets for emissions reduction.
"We are proud to be the first major food company in the world to be carbon neutral, and excited to be the first Canadian company to secure financing terms that rewards our commitment to dramatically reduce our environmental footprint," said Michael McCain, President and CEO of Maple Leaf Foods."
BMO Capital Markets is Sole Bookrunner on the credit facilities and acted as a Sustainability Structuring Agent, working with Maple Leaf Foods to integrate the sustainability targets into the credit facilities. The Co-Lead Arrangers are BMO Capital Markets, Scotiabank, RBC, CIBC, and Rabobank Canada. Four additional lenders participated: Bank of America, JP Morgan Chase, National Bank Financial, and Toronto Dominion Bank.
The credit facilities consist of an unsecured committed revolving line of credit and two unsecured committed term facilities totaling $2 billion in funding for a period ranging from 2019 to 2024.
FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements based on the Company's current expectations and assumptions relating to its environmental performance, its sustainability and emission reduction efforts, as well as the effectiveness of these efforts and initiatives. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: operating performance, the results of sustainability and emission reduction initiatives, the performance of third parties from whom off-sets are purchased and the third-party certification processes for off-sets. These statements are based on current expectations, estimates, forecasts, and projections but there can be no assurance that the results or developments anticipated the Company will be realized. For more information refer to the Company's Annual Management's Discussion and Analysis for the year ended December 31, 2018, its most Annual Information Form (both available on SEDAR at www.sedar.com) and its most recent Sustainability Report available at www.mapleleaffoods.com.
About Maple Leaf Foods
Maple Leaf Foods 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.®, Lightlife®, Field Roast Grain Meat Co.TM 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 (MFI).