Viterra replacing credit lines with new facility
April 16, 2010
by Josh Sosland
CALGARY, ALTA. — Viterra Inc. on April 15 said it is launching the syndication of a C$1.6 billion ($1.6 billion) unsecured revolving credit facility through a syndicate led by TD Securities and RBC Capital Markets. The three-year operating line will replace the company’s existing C$800 million line of credit in Canada and a A$1.2 billion ($1.1 billion) operating line in Australia. The new line will help meet Viterra’s working capital needs. The company may increase the line by up to C$400 million. Viterra said it also intends to reduce the long-term financing needs of its operation in Australia and to repay a C$400 million term loan facility put in place in May 2008. Rex McLennan, Viterra chief financial officer, said the actions represent a “prudent course” aimed at optimizing the company’s balance sheet.