DBRS Finalizes Provisional Rating of BB (low), Stable Trend on AGT’s New Senior Unsecured Notes Issuance

DBRS Limited (DBRS) has today finalized its provisional rating on AGT Food & Ingredients Inc.’s (AGT or the Company) Senior Unsecured Notes at BB (low) with a recovery rating of RR3. The BB (low) rating has also been assigned to AGT’s issuance of $200 million of Senior Unsecured Notes that closed on December 21, 2016. All trends are Stable. Please see the DBRS press release from December 12, 2016, for more background.

The Company’s issuance consisted of a single tranche of $200 million, 5.875% Senior Unsecured Notes due December 21, 2021 (the Notes).

The Notes are senior unsecured obligations of AGT ranking pari passu with existing and future senior unsecured indebtedness of AGT and certain guarantors. The Notes are subordinated to all secured indebtedness, including secured indebtedness of certain guarantors such as Alliance Pulse Processors Inc.’s (APP) indebtedness pursuant to its credit facility, which has a first lien on substantially all of the assets of APP.

AGT is expected to apply the net proceeds from the Notes to the early redemption of the Company’s Senior Secured Second Lien Notes as well as for the repayment of amounts drawn under APP’s credit facilities.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Rating Companies in the Consumer Products Industry and DBRS Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers, which can be found on our website under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.