TSX: MFI
www.mapleleaffoods.com
MISSISSAUGA, ON, June 20,
2023 /PRNewswire/ - Maple Leaf Foods Inc. (TSX: MFI),
an iconic Canadian-based branded food company, announced today that
it has amended its existing sustainability-linked credit
facility. The amendments, which include the addition of a
$400 million, 1-year term loan
tranche, will provide the Company with near-term incremental
liquidity and flexibility as it continues to ramp-up production at
its three new world-class manufacturing facilities that have come
on-line over the last 18 months. As these manufacturing
operations reach their run rate, the Company will focus on lowering
debt levels. The increased debt capacity is intended for near-term
liquidity and is not intended to fund new growth capital
projects.
The amended credit facility now totals $2.4 billion, consisting of a CDN$1.3 billion unsecured committed revolving
line of credit maturing on June 29,
2027, and three unsecured committed term facilities in the
amounts of US$265.0 million,
CDN$350.0 million, and CDN$400.0 million, maturing on June 29, 2027, June 29,
2026, and June 20, 2024,
respectively.
The facility bears interest based on short-term interest rates
and is intended to provide appropriate liquidity levels for the
Company and general corporate purposes. The credit facility also
requires the Company to meet certain covenants. The primary
financial covenant requires the Company to maintain a net debt to
capitalization ratio below a specified threshold. This
covenant was also amended.
The sustainability-linked metrics embedded within the credit
facility were not changed. These metrics are made up of
annual environmental targets directly influenced by Maple Leaf's
actions.
The lending syndicate for the amended facility is comprised of
eleven financial institutions with BMO Capital Markets acting as
Sole Book Runner and Sustainability Structuring Agent, and BMO
Capital Markets, CIBC, RBC, Scotiabank, and Rabobank Canada as
Co-Lead Arrangers. In addition, two new lenders, Farm Credit
Canada and Export Development Canada were added to the syndicate,
joining Bank of America, JP Morgan, National Bank of Canada and TD Bank.
Forward–Looking
Statements
This document contains "forward-looking information" within the
meaning of applicable securities law. These statements are based on
current expectations, estimates, forecasts, and projections about
the industries in which the Company operates, as well as beliefs
and assumptions made by Management of the Company. Such statements
include, but are not limited to, statements with respect to
objectives and goals, in addition to statements with respect to
beliefs, plans, objectives, expectations, anticipations, estimates,
and intentions. Specific forward-looking information in this
document includes, but is not limited to, statements with respect
to: construction of new manufacturing facilities, source of funds
for ongoing business requirements; capital investments and
expectations regarding capital expenditures. Words such as
"expect", "anticipate", "intend", "may", "will", "plan", "believe",
"seek", "estimate", and variations of such words and similar
expressions are intended to identify such forward-looking
information. These statements are not guarantees of future
performance and involve assumptions, risks, and uncertainties that
are difficult to predict, including among other things: the impact
of the Company's debt service and compliance with debt covenants
and other. Additional factors that could cause actual results or
outcomes to differ materially from the results expressed, implied
or forecasted by the forward-looking statements are discussed more
fully in the Company's filings made with the Canadian securities
regulators including in the section entitled "Risk Factors" in the
Company's Management's Discussion and Analysis for the year ended
December 31, 2022. All of such
filings are available on SEDAR at www.sedar.com.
The Company does not intend to, and the Company disclaims any
obligation to, update any forward-looking statements (including any
financial outlooks), whether written or oral, or whether as a
result of new information, future events or otherwise, except as
required by law.
About Maple Leaf Foods
Maple Leaf Foods is a carbon neutral company with a vision to be
the most sustainable protein company on earth, responsibly
producing food products under leading brands including Maple Leaf®,
Maple Leaf Prime®, Maple Leaf Natural Selections®, Schneiders®,
Schneiders® Country Naturals®, Mina®, Greenfield Natural Meat Co.®,
Lightlife® and Field Roast™. The Company employs approximately
14,000 people and does business primarily in Canada, the U.S. and Asia. The Company is headquartered in
Mississauga, Ontario and its
shares trade on the Toronto Stock Exchange (MFI).
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SOURCE Maple Leaf Foods Inc.