AGT Food and Ingredients Inc. completes $200M senior notes offering

On December 21, 2016, AGT Food and Ingredients Inc. (“AGT”) completed its offering of $200 million in aggregate principal amount of senior notes (the “Notes”) due December 21, 2021. The Notes bear interest at an annual rate of 5.875 per cent and were sold at a price of 100 per cent of principal for gross proceeds of $200 million.

The offering was completed by a syndicate of underwriters (the “Underwriters”) led by Scotia Capital Inc., CIBC World Markets Inc., and National Bank Financial Inc., and include Cormark Securities Inc., GMP Securities L.P., AltaCorp Capital Inc., BMO Nesbitt Burns Inc., Raymond James Ltd., RBC Dominion Securities Inc. and TD Securities Inc., by way of a private placement. 

AGT intends to apply the net proceeds of the offering to the early redemption in full of AGT’s currently outstanding 9 per cent senior secured second lien notes due 2018 and to the repayment of indebtedness under certain credit facilities, including certain revolving credit indebtedness, which will be available for future reborrowings that may be used for general corporate purposes. 

Cassels Brock & Blackwell LLP acted as Canadian counsel to AGT with a team composed of Kenton Rein, Jeffrey Roy, Alex Iliopoulos, Adria Leung Lim, James Lyle, Suhuyini Abudulai, Carla Potter and James Morand. Mayer Brown LLP acted as US counsel to AGT with a team led by Kevin Sheridan and David Bakst. 

Blake, Cassels & Graydon LLP acted for the Underwriters with a team that included Tim Andison, Gerald Gaunt, Madison Kragten, David Bristow, Yousaf Khan and Niloo Entezari.