Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.

May 27, 2005 14:32 ET

Pool's $150 Million Rights Offering Successfully Closes

REGINA, SASKATCHEWAN--(CCNMatthews - May 27, 2005) - Saskatchewan Wheat Pool Inc. (TSX:SWP) is pleased to announce that its $150 million rights offering successfully closed today. The Pool received net proceeds of approximately $142.3 million.

There were 46,762,078 shares available to existing Pool shareholders under the rights offering. Approximately 98% of the rights were exercised, leaving only 1,010,584 shares available to those holders who requested additional shares pursuant to the over-subscription privilege. The additional shares were allocated in the manner described in the final prospectus.

The offering was substantially oversubscribed. Computershare Investor Services, the Pool's transfer agent, received more than $272 million from Canadian shareholders who exercised their rights and opted to purchase additional shares. Early next week, Computershare will be issuing the share certificates along with refunds for the additional subscriptions that could not be filled.

Unclaimed rights of shareholders in non-participating jurisdictions were sold on the Toronto Stock Exchange over a period of days at an average price of approximately $2.6515 per right. Those funds will be issued to participants as soon as is practicable.

The Pool will repay in full the $100 million Senior Secured Notes, which are repayable without penalty at the option of the Pool and currently bear interest at 9.10%. The remaining proceeds from the rights offering will be used for general corporate purposes, primarily working capital for the purchase of grains, oilseeds and agri-products inventory and will initially be applied to the Pool's operating lines.

Chief Executive Officer, Mayo Schmidt says, "We are extremely pleased with the success of this program and the response we have received from our shareholders and the market. We have restored the Pool to a position of strength. Our balance sheet is one of the strongest in the industry and we now have the financial flexibility to pursue opportunities that generate value for our customers and our shareholders."

The Pool now has 81,834,137 shares outstanding. Subject to regulatory approval, it is the Pool's intention to establish a small shareholders' program. The program will assist registered shareholders, who hold less than 100 shares, in selling all of their common shares or purchasing additional shares without paying brokerage commissions. Additional details will follow in the near future.

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 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) 569-4782