Maple Leaf Foods Undertakes CDN $355 Million Debt Refinancing
TORONTO, Dec. 16, 2010 (Canada NewsWire via COMTEX) --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Dec. 16 /CNW/ - Maple Leaf Foods (MFI:TSX) announced today that pursuant to a private placement transaction, it has issued or agreed to issue various tranches of notes payable denominated in both CDN$ and US$ totaling approximately CDN $355 million. A portion of the proceeds from the financing were received on December 16, 2010 and the remaining proceeds will be received on or about January 4, 2011 subject to the satisfaction of customary closing conditions. Maturities of the notes range from 2015 to 2021. The net proceeds from the issuance of the notes will be used to repay existing indebtedness
"This debt refinancing extends the maturity profile of the Company's debt at investment grade financing rates," said Michael Vels, Chief Financial Officer. "This refinancing reflects the quality of our balance sheet and allows us to fund our strategic initiatives at competitive financing rates."
Details of the CDN $355 million private placement are set out below:
Principal Maturity Date Coupon
CDN $7 million 2015 4.85%
CDN $30 million 2020 5.91%
US $213 million 2021 5.21%
CDN $103 million 2021 5.91%
The notes are unsecured and were issued to institutional investors in Canada and the United States.
The Company has also effectively converted the US$213 million notes to be issued as part of this refinancing into Canadian dollar-denominated debt of CDN $215 million through the use of cross-currency interest rate swaps. The average Canadian interest rate for the entire financing is 5.99%.
This press release is not an offering of securities for sale in the United States. The notes have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.
Maple Leaf Foods Inc. is a leading Canadian food processing company committed to delivering quality food products to consumers around the world. Headquartered in Toronto, Canada, the Company employs approximately 22,500 people at its operations across Canada, and in the United States, Europe and Asia. Maple Leaf Foods Inc. reported sales of approximately $5.2 billion in 2009.
SOURCE: Maple Leaf Foods Inc.
Michael Vels, Chief Financial Officer, 416-926-2048