Viterra Inc. is making arrangements to raise up to $500 million over the next 25 months under a short form shelf prospectus filed July 23.The prospectus would facilitate access to the Canadian bond market when conditions are consistent with Viterra’s financing objectives, the company said in a news release. The shelf prospectus replaces Viterra’s existing preliminary short form prospectus dated May 4, which has been withdrawn. It would have raised $500 million through senior unsecured notes offered through a syndicate of underwriters co-led by TD Securities and RBC Dominion Securities.If the company offers senior unsecured notes under the new process, it would make a prospectus supplement available that would include the specific terms of the series of the notes being offered.”The flexibility provided by Viterra’s $1.6 billion global credit facility, along with filing a shelf prospectus, leaves us well positioned to access markets at opportune times,” Viterra chief financial officer Rex McLennan said in a news release.Viterra’s share price has rallied in recent weeks after generally declining this year. The price hit its highest level this year in January at about $10.50, but then declined, hitting a low of less than $7 in late June when the company said spring rain in Western Canada would reduce crop acreage and hurt input sales.The share price has rallied to more than $8 since then as grain prices rallied on weather problems that reduce expectations for the global 2010 crop. As well, Viterra’s operations in Australia are expected to do well.The company has also announced that it is opening a marketing office in Naples, Italy, headed by Mauro Ambrosia, who has strong relationships with durum flour millers, pasta makers and other end users.
Viterra files shelf prospectus
explore
Stories from our other publications
