Ag Growth International Inc.
TSX : AFN

Ag Growth International Inc.

October 27, 2009 08:32 ET

Ag Growth Announces Closing of $100,000,000 Public Offering of Convertible Unsecured Subordinated Debentures

WINNIPEG, MANITOBA--(Marketwire - Oct. 27, 2009) –

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ag Growth International Inc. ("Ag Growth") (TSX:AFN) announced today that it has closed its previously announced $100,000,000 aggregate principal amount bought deal offering of convertible unsecured subordinated debentures (the "Debentures") at a price of $1,000 per Debenture. The Debentures were issued pursuant to an agreement with a syndicate of underwriters led by TD Securities Inc. and including CIBC World Markets Inc., National Bank Financial Inc., Cormark Securities Inc., Wellington West Capital Markets Inc., Genuity Capital Markets and Macquarie Capital Markets Canada Ltd. (collectively, the "Underwriters"). Ag Growth intends to use the net proceeds from the offering to repay debt and for general corporate purposes.

The Debentures are due December 31, 2014 and bear interest from the date of issue at 7.0% per annum, payable semi-annually in arrears on June 30 and December 31 each year commencing June 30, 2010. The Debentures are convertible at the holder's option at any time prior to the close of business on the earlier of the Maturity Date and the date of redemption of the Debentures into fully paid and non-assessable common shares ("Common Shares") of Ag Growth at a conversion price of $44.98 per Common Share, being a conversion rate of approximately 22.2321 Common Shares for each $1,000 principal amount of Debentures. The Debentures and Common Shares are listed on the Toronto Stock Exchange under the symbols "AFN.DB" and "AFN", respectively.

Ag Growth has also granted the Underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following closing, to purchase up to an additional $15,000,000 aggregate principal amount of Debentures.

The securities offered have not been and will not be 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 applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Company Profile

Ag Growth is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories and grain aeration equipment. Ag Growth's sales, marketing, and distribution system is comprised of approximately 1,400 dealers and distributors that distribute product in 48 states, nine provinces, and overseas.

Forward-Looking Statements

This press release contains certain forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking information relating to the proposed use of proceeds of the offering. Ag Growth believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. The intended use of the proceeds of the offering might change if the board of directors of Ag Growth determines that it would be in the best interests of Ag Growth to deploy the proceeds for some other purpose.

Any forward-looking information is made as of the date hereof and, except as required by law, Ag Growth assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.

Contact Information

  • Ag Growth International Inc.
    Steve Sommerfeld
    Investor Relations
    (204) 489-1855
    steve@aggrowth.com