Organto Foods arranges four-million-euro financing line

Executive Summary

• Organto Foods Inc. has secured a new integrated financial and foreign exchange solution with Rabobank to support its European operations and fund future growth.
• The agreement includes a €4 million flexible financial facility and a foreign exchange hedging facility to manage operational risks and capitalize on market opportunities.
• Management views these facilities as critical for strengthening the company's position as a supplier of organic and fair-trade fresh produce while maintaining balance sheet strength.

Key Details

• Lender: Cooperatieve Rabobank UA (Netherlands).
• Financial Facility: A four-million-euro (€4,000,000) flexible financing facility.
• Utilization: Based on a percentage of qualified accounts receivable, with potential for expansion as business grows.
• Interest Rate: One-month Euribor rate plus a pre-established margin.
• Fees: An annual standby fee is charged on the average unused portion of the facility.
• Foreign Exchange Facility: Includes access to the Rabobank Easy FX platform.
• FX Terms: Provides foreign exchange hedging at competitive rates without the need for immediate margin calls.
• Purpose: To fund future growth, manage key operational risks during contracting seasons, and strengthen supplier relationships in origin countries.

Notable Quotes

• Steve Bromley, Co-chair and CEO: "We are extremely pleased to have entered into these facilities with a premier bank who has deep roots in the agricultural and foods sectors... These new financial and foreign exchange facilities will help fund this future growth, and together with our current strong balance sheet, further positions our company for an exciting future."
• Bob Kouw, COO, Global Operations: "This new facility with Rabobank is an important milestone as this provides resources to continue to fuel our rapid growth and manage a key operational risk... Securing a flexible working capital facility combined with an enhanced foreign exchange hedging facility allows us to continue to strengthen our position as a premier supplier of organic and fair-trade fresh produce."