Ceres Global Ag Corp. Announces Completion of Financing Agreement
Toronto, ON, January 2, 2015 – Ceres Global Ag Corp. (“Ceres” or the “Corporation”) (TSX: CRP) has closed its previously announced debt financing with aggregate gross proceeds of $145 million. Ceres has received a secured term loan for US$25 million from Macquarie Bank Ltd., which will provide financing for a term of 5 years with an interest rate of one month LIBOR plus 5.25% per annum. The Corporation has also received a revolving credit agreement for $120 million, syndicated with Macquarie Bank Ltd. and ABN AMRO Capital USA LLC. The agreement will provide revolving credit for 364 days with interest rate of one week LIBOR plus 2.875%.
“With the completion of these debt arrangements, Ceres will be poised to carry out with its plans forthe Northgate project: drawing agricultural commodities from southern Saskatchewan into the United States via the BNSF rail network, while also meeting its working capital requirements,” stated CEO Patrick Bracken.
The term loan will be used to refinance one year secured financing announced June 30, 2014. The revolving credit renews and extends current working capital credit to finance operations.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Ceres Global Ag Corp. is a Toronto-based company focused on two primary businesses: a Grain Storage, Handling and Merchandising unit, anchored by its 100% ownership of Riverland Ag Corp., and a Commodity Logistics unit, containing its 25% interest in Stewart Southern Railway Inc. and its development of the Northgate, SK Commodity Logistics Centre. Riverland Ag Corp. is a collection of nine (9) grain storage and handling assets in Minnesota, New York, and Ontario having aggregate storage capacity of approximately 47 million bushels. Riverland Ag also manages two (2) facilities in Wyoming on behalf of its customer-owner. Stewart Southern Railway Inc. is a shortline railway with a range of 130 kilometres that operates in South-eastern Saskatchewan. The Northgate Commodities Logistics Centre is a proposed $96 million grain, oil and oilfield supplies transloading site being developed in conjunction with Riverland Ag and several potential energy company partners, connected to BNSF Railway.
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