LUNENBURG, NS, Oct. 15 /CNW/ - High Liner Foods Incorporated (TSX:HLF;
TSX:HLF.A) today commented on the recent news of the receivership of one of
Iceland's major banks, Landsbanki, one of High Liner's three lenders under its
working capital credit facility.
In December 2007, High Liner entered into a CA$120 million credit
facility with a syndicate of lenders consisting of the Royal Bank of Canada,
as Lender and Administrative Agent and CIT Business Credit Canada Inc., as
Lender and Collateral Agent.
Landsbanki Islands hf participated in the syndication of the loan by
providing a U.S. dollar revolving credit facility of CA$40 million to High
Liner's U.S. subsidiary, High Liner Foods (USA), Incorporated. At present,
less than $15 million is outstanding on that portion of the facility,
including letters of credit. Landsbanki has notified the Agent that it would
not respond at this time to High Liner's most recent call for an advance on
the facility, and it has not provided any concrete information with respect to
its ability to continue as a lender in the syndication.
Kelly Nelson, Chief Financial Officer of High Liner Foods, commented:
"While the outcome of the Landsbanki situation is unknown, our overall credit
facility is sufficient to fund our current operating requirements. Including
the amount outstanding to Landsbanki, our total current borrowings are only
$39.2 million and, including letters of credit at $8.8 million, our total
utilization is $48.0 million, or 40% of the credit authorized under the
overall syndicated facility." Mr. Nelson also noted: "High Liner is fully
compliant with its obligations under the facility and Landsbanki has not to
date indicated that it will not recommence servicing High Liner's loan." The
terms of the credit agreement require that the Agent suspend any repayments to
a defaulting lender.
High Liner has no exposure to any other Icelandic bank.
About High Liner Foods Incorporated
High Liner Foods Incorporated is a leading North American processor and
marketer of prepared, value-added frozen seafood. High Liner's branded
products are sold throughout the United States, Canada and Mexico under the
High Liner®, Fisher Boy®, Mirabel® and Sea Cuisine™ labels, and are
available in most grocery and club stores. The Company also sells its High
Liner®, FPI® and Mirabel® food service products to restaurants and
institutions, and is a major supplier of private label seafood products to
North American food retailers and food service distributors. High Liner Foods
is a publicly traded Canadian company. Its common shares trade under the
symbol HLF and its Non-Voting Equity Shares trade under the symbol HLF.A on
the Toronto Stock Exchange.
This document contains forward-looking statements, particularly with
respect to the uncertain future of Landsbanki and with respect to High Liner's
borrowing requirements in the near term. These statements are based on
publicly available information about Landsbanki and arise out of our
experience, our perception of trends, current conditions and expected future
developments as well as other factors. The statements are not a guarantee of
future performance. By their nature, forward-looking statements involve
uncertainties and risks that the forecasts and targets will not be achieved.
Readers are cautioned not to place undue reliance on forward-looking
statements, as a number of important factors, as discussed herein and in our
other continuous disclosure documents, could cause actual results to differ
materially from those expressed in such forward-looking statements. We include
in publicly available documents filed from time to time with securities
commissions and The Toronto Stock Exchange, a thorough discussion of the risk
factors that can cause anticipated outcomes to differ from actual outcomes. We
disclaim any intention or obligation to update or revise forward-looking
statements.
For further information about the Company, please visit our Internet site
at www.highlinerfoods.com or send e-mail to investor@highlinerfoodinc.com.
%SEDAR: 00001789E
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