HIGH LINER FOODS SECURES NEW CREDIT FACILITY
LUNENBURG, NS, Nov. 17 /CNW/ - High Liner Foods Incorporated (TSX: HLF; HLF.A) a leading North American value-added frozen seafood company, today announced that it has entered into a new 3-year $120M asset-backed credit facility similar to the Company's existing line of credit set to expire on January 20, 2011. The new facility will mature in November 2013, and based on current funded debt to EBITDA ratios, will be borrowed at LIBOR plus 1.75% or Prime. In addition, standby fees will be decreased to 0.375% on unused facilities.
"Securing access to this credit facility leaves us well-positioned to consider acquisition opportunities," explained Henry Demone, president and CEO, High Liner Foods Incorporated. "As a result of our continued growth in earnings, we have achieved a lower debt to EBITDA ratio which has allowed us to secure the new facility on terms better than those of our existing facility."
The credit facility was arranged and will be agented by the Royal Bank of Canada with JP Morgan Chase Bank, BMO Bank of Montreal and CIBC as additional syndicate members.
The details of the new credit facility will be filed on www.sedar.com in the next few weeks.
About High Liner Foods Incorporated
High Liner Foods Incorporated is a leading North American processor and marketer of prepared, value-added frozen seafood. High Liner's branded products are sold throughout the United States, Canada and Mexico under the High Liner®, Fisher Boy®, Mirabel® and Sea Cuisine™ labels, and are available in most grocery and club stores. The Company also sells its High Liner®, FPI® and Mirabel® food service products to restaurants and institutions, and is a major supplier of private label seafood products to North American food retailers and food service distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbols HLF and HLF.A on the Toronto Stock Exchange.
This document contains forward-looking statement. Forward-looking statements can generally be identified by the use of the conditional tense, the words "may", "should", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective" or "continue" or the negative of these terms or variations of them or words and expressions of similar nature., Specific forward-looking statements in this document include, but are not limited to expectations with respect to seafood and other costs, a strong Canadian dollar, planned volume growth, anticipated financial performance market forces and the state of the economy. These statements are based on a number of factors and assumptions including, but not limited to: availability, demand and prices of raw materials, energy and supplies; the condition of the Canadian and United States economies; product pricing; foreign exchange rates, especially the rate of exchange of the Canadian dollar to the U.S. dollar; our ability to attract and retain customers; our operating costs; interest rates; and continued access to capital. The statements are not a guarantee of future performance. By their nature, forward-looking statements involve uncertainties and risks that the forecasts and targets will not be achieved. Readers are cautioned not to place undue reliance on forward-looking statements, as actual results may differ materially from those expressed in such forward-looking statements. We include in publicly available documents filed from time to time with securities commissions and The Toronto Stock Exchange, a discussion of the risk factors that can cause anticipated outcomes to differ from actual outcomes. Except as required under applicable securities legislation, we do not undertake to update forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, whether as a result of new information, future events or otherwise..
For further information about the Company, please visit our website at www.highlinerfoods.com or send an e-mail to investor@highlinerfoods.com.
%SEDAR: 00001789E