SunOpta's Unit To Raise About $300 Million From Senior Secured Second Lien Notes

SunOpta, Inc. (USA)

disclosed, in a statement to the media, that its subsidiary, SunOpta Foods Inc. plans to enter the market with a senior secured second lien notes due 2023. According to the company, it plans to raise $300 million through a private offering in the near term. SunOpta indicated that the net proceeds would be used to repay its outstanding term loan completely under its Second Lien Loan Agreement. The company said that the Senior Notes would come up with a guarantee and each one of its fully owned subsidiary is a guarantor under the Global Credit Facility. The company also disclosed that the Senior Notes would be offered to the qualified institutional investors only in line with the Rule 144A. SunOpta said that the issue would be done through private placement only. Shares of the company closed with 10% gain on Monday.