Feb. 15, Langley, B.C., (CNW) – Bevo Farms Ltd., a subsidiary
of Bevo Agro Inc., has negotiated a new credit facility totalling $24 million with
Farm Credit Canada (FCC).
Feb. 15, Langley, B.C., (CNW) – Bevo Farms Ltd., a subsidiary
of Bevo Agro Inc., has negotiated a new credit facility totalling $24 million with
Farm Credit Canada (FCC). This facility
will replace existing facilities with BMO Bank of Montreal (BMO) in the
aggregate principal sum of $17 million representing all of the current BMO
facilities with the exception of the $2 million operating line referred to in
this release. The FCC facility will also provide funds to pay out the $5-million Banyan Capital Partners (“Banyan”) convertible debenture that matured
in September 2007.
The FCC facility consists of a $2 million loan to be used
for general agricultural purposes, an $11 million term loan amortized over 20
years, and an $11 million term loan amortized over 15 years. All of the loans
have a five-year term. BMO Bank of
Montreal will continue to provide a $2-million operating loan facility for
day-to-day operations. The BMO facility will be secured in part by a $1-million
cash deposit provided by Banyan, for which the Company will pay annual interest
of 12 per cent.
Bevo Agro is North America’s leading supplier of
propagated agricultural plants, growing and distributing vegetable, flower,
berry and other plant seedlings to North America’s growers. Bevo propagates
quality seedlings and plants primarily for wholesale vegetable greenhouse
growers, field growers and nursery operators from its 34 acre production
facility. FCC is Canada’s largest
provider of business and financial services to farms and agribusiness,
operating out of 100 offices located primarily in rural Canada.
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