Aug. 4, 2011, Vancouver — Village Farms International, Inc. announced today that it has obtained a financing commitment from a syndicate of lenders for a new $92.5-million US secured credit facility. The new secured credit facility will replace the company’s existing term and revolving credit facilities and will provide new term debt for the company’s previously announced new greenhouse facility in Monahans, Texas.
The new secured credit facility consists of a $15-million revolving credit facility, a $49.5-million term loan (which will replace the company’s existing term loans) and an additional $28-million term loan to fund the Monahans project.
Both term loan provisions contain long-term amortizations and have terms to maturity of three years, expiring on or around August or September 2014. Funding under the new secured credit facility, which is expected to occur on or before Sept. 30, 2011, is subject to the parties settling definitive closing documents and the company satisfying customary conditions to closing.
“We are pleased to have secured the financing for our current greenhouse expansion,” said CFO Stephen Ruffini. “The financing is aligned with our capital structure strategy to utilize traditional commercial term debt and internal equity to build the 30-acre first phase greenhouse utilizing the Company’s GATES(TM) technology.
“This expansion and financing is consistent with the Company’s conversion to a growth company from an income fund at the end of 2009. We are very appreciative of the interest and support of HSBC Bank Canada and Farm Credit Canada in our new project and look forward to a continuing relationship with these institutions.”
ABOUT VILLAGE FARMS
Village Farms is one of the largest producers, marketers and distributors of premium-quality, greenhouse-grown tomatoes, bell peppers and cucumbers in North America. It has greenhouse facilities located in British Columbia and Texas.
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