Viterra Inc.

Viterra Inc.

January 21, 2010 07:15 ET

Viterra to Reduce Australian Short-Term Debt Position

CALGARY, ALBERTA--(Marketwire - Jan. 21, 2010) - Viterra (TSX:VT) (ASX:VTA) today announced its intention to, by the end of January, 2010 reduce the short-term debt of its Australian operations by $300 million.

In light of Viterra's strong liquidity position, the Company is utilizing $300 million of surplus cash to reduce seasonal drawings on the AUD $1.2 billion operating facility of its wholly owned Australian subsidiary, formerly known as ABB Grain Ltd. This action is expected to reduce the Company's interest expense (net of interest otherwise earned on short-term investments) by approximately $1.3 million per month.

Rex McLennan, Chief Financial Officer of Viterra commented, "At year-end, we had over $1 billion in cash and short-term investments on our balance sheet, of which approximately $800 million is available for other uses. This is a prudent course of action, consistent with our global focus on operations and liquidity management."

Availability under the $1.2 billion facility is not impacted. Funds are expected to remain in place until they are required to support Viterra's future growth plans.

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 five interrelated business areas: grain handling and marketing, agri-products, food processing, feed products and financial services. 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. TSX: VT ASX: VTA

Contact Information

  • Viterra Inc.: Investors contact
    Colleen Vancha, Senior Vice-President,
    Investor Relations and Corporate Affairs
    (306) 569-5014
    Viterra Inc.: Media contact:
    Peter Flengeris
    Investor Relations and Corporate Affairs
    (306) 569-4810