Canadian meat processor Maple Leaf Foods Inc. has issued notice of repayment to be made on April 14 for all of its outstanding senior notes in aggregate principal amounts of CAD706 million (USD631.8 million), including USD318 million notes converted at 1.106 USD/CAD, and original maturity dates ranging from December 2014 to January 2021. The estimated redemption amount based on current foreign exchange rates, U.S. Treasury yields and Government of Canada bond yields, including make-whole premiums and accrued interest, is $800 million.
The repayment will be paid from available and committed bank credit facilities and will provide greater financial flexibility. Following repayment of the notes, the meat processing company's remaining debt will consist largely of short term bank facilities that the company plans to repay with proceeds from the previously announced $1.65 billion sale of its interest in Canada Bread Company Ltd. to Grupo Bimbo, S.A.B. de C.V.
The Canadian Competition Bureau has recently given clearance for the transaction to proceed. Subject to remaining regulatory and shareholder approvals, the sale is expected to close in the second quarter of 2014.