Business
Sun Gro Horticulture Income Fund Completes Fixed Rate Private Placement of Long-Term Debt
TRADING SYMBOL: Toronto Stock Exchange - GRO.UN VANCOUVER, May 14 /CNW/ - Sun Gro Horticulture In...
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\nTRADING SYMBOL: Toronto Stock Exchange - GRO.UN\n\n\nVANCOUVER, May 14 /CNW/ - Sun Gro Horticulture Income Fund (the Fund)\ntoday reported that funding of the US$50.0 million fixed rate private\nplacement of long-term debt it announced on March 26, 2008 has now been\ncompleted, as expected. The placement is with The Prudential Insurance Company\nof America and two of its affiliates.\n\n\n"The refinancing reduces our exposure to currency exchange and interest\nrate fluctuations, which significantly improves Sun Gro's risk profile going\nforward," said Mitch Weaver, President and CEO, and a Trustee of the Fund.\n"This was one of our key priorities for 2008 and we are extremely pleased to\nhave successfully concluded the transaction."\n\n\nThe new facility is split evenly between a five-year term at an interest\nrate of 7.31% and a seven-year term at an interest rate of 8.08%. It will\nextend the maturity of a significant portion of Sun Gro's debt. Net proceeds\nwill be used to refinance the $21.5 million borrowed to acquire GrowBest\nHoldings, LLC and other US and Canadian dollar debt.\n\n\nForward-Looking Statements\n\n\nThis news release contains forward-looking statements. These statements\nrelate to future events or future performance and reflect Sun Gro's\nexpectations regarding its growth, results of operations, performance,\nbusiness prospects, opportunities or industry performance or trends. These\nforward-looking statements reflect management's current internal projections,\nexpectations or beliefs and are based on information currently available. In\nsome cases, forward-looking statements can be identified by terminology such\nas "may", "will", "should", "expect", "intend", "plan", "anticipate",\n"believe", "predict", "potential", "continue" or the negative of these terms\nor other comparable terminology. A number of factors could cause actual events\nor results to differ materially from those discussed in the forward-looking\nstatements. Important factors that could cause actual results to differ\nmaterially from Sun Gro's expectations include, among other things,\nfluctuations in currency exchange rates and interest rates, changes in tax\nlaws, the impact of adverse weather condition...