Business
AGI Announces Offering of $75 Million Senior Subordinated Unsecured Debentures; Reaffirms 2025 Outlook
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES...
About this update from Ag Growth International Inc.
[{"type":"text","content":"AGI Announces Offering of $75 Million Senior Subordinated Unsecured Debentures; Reaffirms 2025 Outlook\n\n\n\n\n NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n \n\n\n WINNIPEG, Manitoba, May 22, 2025 (GLOBE NEWSWIRE) -- Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we” or “our”) today announced a financing and reaffirmed its 2025 outlook.\n \n\n\n\n Offering of Senior Subordinated Unsecured Debentures\n \n\n\n AGI has reached an agreement with a syndicate of underwriters led by CIBC Capital Markets (the “Underwriters”), pursuant to which AGI will issue on a “bought deal” basis, subject to regulatory approval, $75 million aggregate principal amount of senior subordinated unsecured debentures (the “Debentures”) at a price of $1,000 per Debenture (collectively, the “Offering”).\n \n\n AGI has also granted to the Underwriters an over-allotment option (the “Over-Allotment Option”) , exercisable in whole or in part for a period expiring 30 days following closing of the Offering, to purchase up to an additional $11.25 million aggregate principal amount of Debentures at the same price per Debenture. If the Over-Allotment Option is fully exercised, the total gross proceeds from the Offering to AGI will be $86.25 million.\n \n\n The net proceeds of the Offering are expected to be used to repay indebtedness under the Company’s senior operating credit lines, which will then be available to be redrawn for general corporate purposes.\n \n\n “Today’s announcement supports the execution of our international Commercial growth strategy without compromising our commitment to responsible debt management,” said Jim Rudyk, Chief Financial Officer of AGI. “This debenture issuance enhances our flexibility and capacity to respond to attractive Commercial segment growth opportunities in key international regions, reinforcing our strong market position. We plan to apply the net proceeds against our senior credit lines, so we do not expect any changes to our overall debt levels or leverage ratios from today’s announcement. We remain focused on managing our balance sheet and lowering our leverage ratios throughout 2025.&#x...