Viterra: announces launch of global financing facility

Calgary / CA. (vi) Canadian agribusiness Viterra Inc. announced that it has launched the syndication of a 1,6 billion CAD unsecured revolving credit facility through a syndicate of financial institutions led by TD Securities and RBC Capital Markets (who will act as lead arrangers and joint bookrunners). Commonwealth Bank of Australia, HSBC and Rabobank will act as co-lead arrangers.

The three-year unsecured operating line will replace Viterra´s existing 800 million CAD line of credit in Canada and the 1,2 billion AUD operating line in Australia and will be used to support the company´s global working capital requirements. Viterra has the right to increase the facility, if required, by up to 400 million CAD.

«This new operating line provides Viterra with the capacity and the flexibility to support our global financing requirements and is a key milestone in our integration efforts to bring the capital structures of our operations around the world under a common platform», said Viterra President and CEO Mayo Schmidt.

Viterra also intends to permanently reduce the long-term financing requirements associated with its Australian operation. On January 21, 2010, the Company announced that it had applied 300 million AUD in cash to reduce seasonal drawings on the Australia operating facility. Those Dollars will now be used to permanently reduce the long-term debt of that business. In addition, it is the Company´s intention, upon closing of this transaction, to utilize a portion of this new operating line to repay a $400 million term loan facility put in place in May 2008 with a syndicate of financial institutions. This will result in the elimination of security on all of Viterra´s publicly-traded notes.

Rex McLennan, Chief Financial Officer of Viterra: «The steps we have taken today are consistent with our global focus on operations and commitment to optimizing our balance sheet. This is a prudent course of action that will improve the credit quality of Viterra and ultimately reduce the overall cost of capital of our international enterprise». The global financing facility is expected to close in May 2010.