TORONTO – Maple Leaf Foods has entered into a new four-year $800 million (US$821 million) revolving credit facility with a syndicate of Canadian, US and international institutions. The facility replaces a $870 million (US$893 million) revolving credit facility that was due to mature on May 31.

The new facility is unsecured and will bear interest based on short-term interest rates. The financing, which matures on May 16, 2015, increases the weighted average term of the company's debt to 4.6 years. The facility will be used to meet the company's short-term funding requirements for general corporate purposes, and to provide appropriate levels of liquidity.

This facility is the last in a series of debt refinancings that began in 2010, and was negotiated at competitive investment grade financing rates, said Michael Vels, chief financial officer.

"It provides sufficient liquidity to support both our ongoing business needs and the implementation of our value creation plan,” he added. “We are committed to maintaining a strong balance sheet by ensuring our strategic investments are matched with steady earnings growth. Our ability to finance on favorable terms is a reflection of the investment community's confidence in our business and future."