Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.

April 06, 2006 11:42 ET

Pool Closes $100 Million Senior Unsecured Notes

REGINA, SASKATCHEWAN--(CCNMatthews - April 6, 2006) - Saskatchewan Wheat Pool Inc. (TSX:SWP) (the "Pool") announced today that the offering of $100 million of 8% Senior Unsecured Notes (the "Notes") due April 8, 2013 closed successfully. After the deduction of the underwriters' fee, the net proceeds are $97.75 million. The underwriters advised the Pool that the Notes were significantly over-subscribed.

The Pool intends to use the net proceeds from these Notes, along with the net proceeds from the $50.25 million equity offering, which closed yesterday, and working capital to redeem the $150 million of 12% Senior Subordinated Notes due November 29, 2008. The Trustee for the note holders has been given notice that the Pool will redeem the Senior Subordinated Notes on May 5, 2006.

"The redemption of the Senior Subordinated Notes is the final step in our financial transformation," said Pool President and Chief Executive Officer Mayo Schmidt. "We have one of the strongest balance sheets in the industry and now we are in an ideal position to grow the business."

The new Notes have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States to any person absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes in the United States.

Saskatchewan Wheat Pool Inc. 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 value-added businesses and strategic alliances, which allow the Pool to leverage its pivotal position between Prairie farmers and destination customers. The Pool's common shares are listed on the Toronto Stock Exchange under the symbol SWP.

Contact Information

  • Saskatchewan Wheat Pool
    Colleen Vancha, Vice-President
    Investor Relations & Communications
    (306) 569-4859