AGI’s credit facility has been expanded to include a $50 million increase in its senior revolving facility as well as the creation of a separate one-year revolving facility of $50 million to provide increased short-term flexibility during the Covid-19 crisis.
AGI’s senior credit facility now totals approximately $575 million Canadian dollar equivalent, excluding an undrawn accordion of $100 million. For reference, as at March 31, 2020 AGI had drawn $345 million under these facilities.
The amendments to the credit facility include a suspension of all financial covenant requirements for the six-month period ending October 31, 2020 as well as the ability to normalize Q1 2020 and Q2 2020 financial results for certain Covid-19 impacts when calculating trailing EBITDA in future covenant calculations. Following October 31, 2020, AGI’s minimum leverage ratio covenant will return to 3.75x up to and including the calculation as at March 31, 2021. The minimum leverage ratio decreases to 3.50x for the quarter ended June 30, 2021 and returns to 3.25x thereafter. During the financial covenant suspension period AGI is subject to a minimum liquidity covenant. The maturity date of the facility remains March 20, 2025. The amendments announced today do not impact terms of AGI’s Series B and C secured notes that total $60 million.
We would like to thank our banking partners for their outstanding support during this crisis and we welcome Farm Credit Canada (FCC) to our lending syndicate. This amendment, in combination with our recently announced dividend change, is part of our Preparation with Progress initiative to prudently deal with the crisis while also progressing on strategic initiatives.”
said Tim Close, President and CEO of AGI.