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SunOpta Announces New Credit Facility
Monday, November 02, 2009 7:53 AM


(Source: PrimeNewswire)trackingTORONTO, Nov. 2, 2009 (GLOBE NEWSWIRE) -- SunOpta Inc. ("the Company" or "SunOpta") (Nasdaq:STKL) (TSX:SOY) today announced that the Company has entered into an amended and restated credit agreement (the "Facility") with a syndicate of lenders, led by The Bank of Montreal as agent.

The Facility provides for asset-based, revolving credit facilities of up to U.S. $80 million and CDN $20 million respectively, subject to borrowing base availability. The Company will also have term debt outstanding under the Facility totaling U.S. $45 million. Revolving and non-revolving acquisition lines which existed in the Company's previous facilities have been replaced by increased availability under the revolving credit lines in the new Facility. The Facility has a maturity of three years from the date of closing and provides borrowing capacity equal to amounts that existed under the previous loan agreement.

Interest on borrowings under this Facility accrue at the Company's option based on various reference rates including Canadian bank prime, U.S. bank prime and/or LIBOR, plus applicable margin, and it is anticipated that the Company will realize lower borrowing rates versus current facilities based on revised interest rate grids associated with the new Facility combined with the effect of the Company's improved financial position. The applicable margin is based on certain financial ratios, calculated in accordance with the terms of the Facility. The Company's obligations under the Facility are collateralized by substantially all of its assets in which a security interest may lawfully be granted. Additional details related to the Facility and a copy of the restated credit agreement will be set forth in the Company's Form 8-K to be filed with the SEC.

Eric Davis, Vice President and Chief Financial Officer of SunOpta Inc. commented, "We are extremely pleased to have finalized our new syndicated banking arrangements. Completion of this new three year financing arrangement is another important step for our Company as we continue to solidify our financial position. We believe this new Facility, combined with our ongoing focus on improving operating margins and return on assets employed and aggressively managing working capital will provide the Company with the liquidity and flexibility to support our long-term goals and commitments."

About SunOpta Inc.

SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic foods and natural health markets.



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