Viterra Inc.
TSX : VT
ASX : VTA

Viterra Inc.

April 15, 2010 21:39 ET

Viterra Announces Launch of Global Financing Facility

CALGARY, ALBERTA--(Marketwire - April 15, 2010) - Viterra Inc. (TSX:VT) (ASX:VTA) today announced that it has launched the syndication of a C$1.6 billion unsecured revolving credit facility through a syndicate of financial institutions led by TD Securities and RBC Capital Markets (who will act as lead arrangers and joint bookrunners). Commonwealth Bank of Australia, HSBC and Rabobank will act as co-lead arrangers. 

The three-year unsecured operating line will replace Viterra's existing C$800 million line of credit in Canada and the A$1.2 billion operating line in Australia and will be used to support the company's global working capital requirements. Viterra has the right to increase the facility, if required, by up to C$400 million.

"This new operating line provides Viterra with the capacity and the flexibility to support our global financing requirements and is a key milestone in our integration efforts to bring the capital structures of our operations around the world under a common platform," said Viterra President and CEO Mayo Schmidt.

Viterra also intends to permanently reduce the long-term financing requirements associated with its Australian operation. On January 21, 2010, the Company announced that it had applied A$300 million in cash to reduce seasonal drawings on the Australia operating facility. Those dollars will now be used to permanently reduce the long-term debt of that business. In addition, it is the Company's intention, upon closing of this transaction, to utilize a portion of this new operating line to repay a $400 million term loan facility put in place in May 2008 with a syndicate of financial institutions. This will result in the elimination of security on all of Viterra's publicly-traded notes.

Rex McLennan, Chief Financial Officer of Viterra commented, "The steps we have taken today are consistent with our global focus on operations and commitment to optimizing our balance sheet. This is a prudent course of action that will improve the credit quality of Viterra and ultimately reduce the overall cost of capital of our international enterprise." 

The global financing facility is expected to close in May 2010.

Forward-Looking Information

This release contains forward looking statements that involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such statements. Important factors that could affect these statements include, without limitation, weather conditions; producer's decisions regarding total planted acreage, crop selection, and utilization levels of farm inputs such as fertilizers and pesticides; grain export levels; changes in government policy and transportation deregulation; world agricultural commodity prices and markets; currency risk; changes in competitive forces including pricing pressures; and global political and economic conditions, including grain subsidy actions of the United States and European Union.

About Viterra

Viterra Inc. provides premium quality ingredients to leading global food manufacturers. Headquartered in Canada, the global agribusiness has extensive operations across Western Canada, Australia, and New Zealand, with Adelaide, Australia as the base for Viterra's Southeast Asian operations. Our growing international presence also extends to operations in the United States, offices in Japan, Singapore, China and Switzerland. Driven by an entrepreneurial spirit, we operate in three distinct businesses: grain handling and marketing, agri-products, and value-added processing. Our expertise, close relationships with producers, and superior logistical assets allow the company to consistently meet the needs of the most discerning end-use customers, helping to fulfill the nutritional needs of people around the world.

Contact Information

  • Viterra Inc.
    Peter Flengeris
    Investor Relations and Corporate Affairs
    (306) 569-4810
    www.viterra.ca