TORONTO – An agreement has been completed between Maple Leaf Foods and a syndicate of banks, including the majority of the banks in its existing revolving credit facility, to augment the company's primary revolving credit facility with a $250 million short-term bank lending facility. The short-term bank facility matures concurrently with the company's primary revolving credit facility, on May 31, 2011.
The facility is an unsecured, delayed draw term loan and bears interest based on short-term interest rates. The facility will be used to meet the company's short-term funding requirements for general corporate purposes, and to provide an adequate level of excess liquidity.
The facility includes covenants that are materially consistent with the company's existing credit arrangements.
Maple Leaf Foods Inc. employs approximately 23,500 people at its operations across Canada, and in the U.S., Europe and Asia. In 2009, the company reported sales of approximately $5.2 billion.