Alliance Grain Traders Inc. announces closing of offering of $125 million senior secured notes

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SYMBOL: TSX: AGT

REGINA, Feb. 14, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT") announced today the closing of its previously announced offering of $125 million in aggregate principal amount of senior secured second lien notes (the "Notes") by way of private placement in Canada and the United States . The Notes are due February 14, 2018 and bear interest at an annual rate of 9% and were sold at a price of 99.50% of principal for gross proceeds of $124,375,000

The Notes were offered in all provinces of Canada and in the United States by a syndicate of underwriters led by Scotia Capital Inc., CIBC World Markets Inc. and GMP Securities L.P., and including AltaCorp Capital Inc. and Canaccord Genuity Corp., by way of a private placement under applicable securities laws.

AGT intends to apply the net proceeds of the offering to repay indebtedness under certain existing credit facilities, including certain revolving credit indebtedness that will be available for future reborrowings that may be used for general corporate purposes.

The Notes have not been and will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada , directly or indirectly, other than pursuant to applicable private placement exemptions. The Notes have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction.

Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a value-added pulse, staple food and ingredient processor for export and domestic markets. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada , the U.S., Turkey , China , Australia and South Africa , merchandising and sales offices in the U.K., the Netherlands and Spain and origination offices in Russia , AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres.  Through its subsidiaries in Turkey , the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.

Cautionary Statements
Certain statements in this press release are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGT at the time of preparation, may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations, as well as those factors referred to in the section entitled "Risk Factors" in the Annual Information Form of AGT dated March 27, 2012 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.  AGT expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

SOURCE: Alliance Grain Traders Inc.