Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.

March 14, 2005 07:00 ET

Pool Announces Details of its New Financing Arrangements




MARCH 14, 2005 - 07:00 ET

Pool Announces Details of its New Financing

REGINA, SASKATCHEWAN--(CCNMatthews - March 14, 2005) - Saskatchewan
Wheat Pool (TSX:SWP.NV.B) announced details of its new financing
arrangements, which were initially announced on December 14, 2004 and
closed today.

The first, with a syndicate of financial institutions led by GE Canada
Finance Holding Company, will provide a three-year $250 million
revolving asset-backed loan facility to fund the Pool's daily operating
requirements. This replaces the Pool's existing operating facility that
was to mature on July 31, 2005. Interest on the loan is at a floating
rate of prime plus 1.5 per cent.

"The renewal of our operating lines of credit to 2008 gives the Pool,
its farmers and its suppliers the foundation and confidence we need to
move forward to drive shared value to all our key stakeholders," says
Chief Executive Officer, Mayo Schmidt

The second agreement provides for $100 million of senior secured notes
to be purchased by Amaranth LLC, which will replace the Pool's current
$78 million term bank debt. The remainder will be used to support the
Pool's liquidity needs. Interest on this facility is at a 1-month LIBOR
rate plus 6.5 per cent. This agreement is repayable at the option of the
Pool, in whole or in part, at anytime without penalty. It provides for
an initial two-year term with extensions for two additional years at the
option of the company. Scheduled principal payments of $1.1 million per
month will commence August 2006. Additional payments will be required if
the free cash flow defined in the agreement exceeds certain levels in
fiscal 2005 and 2006. The company does not expect that any significant
principal repayments will be required under this provision for fiscal

"With the successful completion of our capital markets initiative over
the coming months in which we expect to raise net proceeds of
approximately $143 million, the Pool intends to retire a minimum of $100
million of its term debt to dramatically improve our balance sheet and
reduce our interest costs", added Schmidt. "These actions, together with
the enhancements we have implemented in our core operations, will
solidify the Pool as a leading agri-products and grain handling service
provider for western Canadian producers and end-use customers around the

Saskatchewan Wheat Pool is a publicly traded agribusiness headquartered
in Regina, Saskatchewan. Anchored by a Prairie-wide grain handling and
agri-products marketing network, the Pool channels Prairie production to
end-use markets in North America and around the world. These operations
are complemented by agri-food processing and strategic alliances that
allow the Pool to leverage its pivotal position between Prairie farmers
and destination customers. The Pool's Class B shares are listed on the
Toronto Stock Exchange under the symbol SWP.NV.B.


Contact Information

    Saskatchewan Wheat Pool
    Colleen Vancha
    Vice President, Investor Relations and Communications
    (306) 569-4782
    Shareholder Contact