Ceres Global Ag Corp. Announces Refinancing of Existing Debt
TORONTO, ON (November 19, 2018) – Ceres (TSX: CRP) (“Ceres” or the “Corporation”) announced today that it has obtained a term loan in the principal amount of US$20 million (the “Loan”) from Bixby Bridge Fund IV, LLC, (the “Lender”), based in Northbrook, IL. A portion of the proceeds of the Loan have been used to repay all amounts outstanding under the Corporation’s $10 million term loan with Macquarie Bank Limited (“Macquarie”). Ceres’ revolving credit facility remains unchanged and continues to be held by Macquarie. The Loan is secured primarily by mortgages on Ceres’ elevator facilities, including; one in Northgate, SK, one in Duluth, MN and two in Minneapolis, MN.
“The refinancing of our term debt provides the flexibility needed to fund corporate operations and our near-term expansion,” said Kyle Egbert, Chief Financial Officer of Ceres. “We continue to have a very strong balance sheet and look forward to adding assets as part of our overall growth strategy.”
Pursuant to the agreed upon conditions of the Loan, Ceres may at its discretion, repay the balance of the Loan at any time subject to typical notice requirements. The pricing of the Loan is a set margin over 30-day Libor. Based on the current 30-day Libor Rate, the interest payable is expected to be in the mid to high 7% per annum range over the four-year term.
An affiliate of the Lender, separate and distinct from the Lender, holds an indirect, minority, investment in Ceres, and, therefore, the Lender and/or this affiliate may be a related party of the Corporation. The Loan was negotiated on arm’s length terms after consideration of other financing alternatives and under the supervision of members of the Corporation’s Board of Directors who are independent of the Lender.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through our network of commodity logistics centers and team of industry experts, Ceres procures and provides North American agricultural commodities & value-added products, industrial products, fertilizer, energy products and reliable supply chain logistics services to customers worldwide.
Ceres operates five locations, Duluth, MN; Minneapolis, MN; Shakopee, MN; Northgate, Saskatchewan; and Port Colborne, Ontario, and is headquartered in Minneapolis, MN. Our facilities throughout North America have an aggregate grain and oilseed storage capacity of approximately 29.7 million bushels.
Ceres also has a 50% interest in Savage Riverport LLC, a joint venture with Consolidated Grain and Barge Co. (“CGB”), a 25% interest in Stewart Southern Railway Inc., a short-line railway located in southeast Saskatchewan with a range of 130 kilometers, and a 17% interest in Canterra Seed Holdings Ltd, a Canadian-based seed development company.