Agricore United has obtained from a consortium of lenders $138 million US in a senior secured institutional term loan, which it will use partly to buy a feed company.
The company said in a News release
news it will use $50 million for the previously announced acquisition of Hi-Pro Feeds, a feed manufacturing business headquartered in Friona, Texas.
Hi-Pro has four facilities in Texas and New Mexico with 600,000 tonnes of feed manufacturing capacity.
The rest of the money, $88 million, will be used to repay AU’s 9.65 percent syndicated term loan and for general corporate purposes.
AU also said it had completed various transactions to manage the risk of interest rate and currency fluctuations on the new loan.
