WINNIPEG, MANITOBA, CANADA — Ag Growth International Inc. (AGI) has extended its credit facility with five Canadian banks led by the Canadian Imperial Bank of Commerce.

The extension process started in January with the objective of improving terms and conditions in a favorable baking environment.

Given the recent COVID-19 outbreak, the extension takes on more importance, the company said.

The facility has been extended to March 2025 and includes amendment of certain terms such as improved pricing grid and an increase to the maximum senior debt leverage ratio to 3.75 for the balance of 2020.

For reference, AGI’s senior debt leverage ratio as at its most recently published quarter-end, Sept. 30, 2019, was 2.78x.

”We would like to thank our partners at each of the banks for their ongoing support,” said Tim Close, president and chief executive officer of AGI. ”While the work on this amendment was started prior to the COVID-19 crisis and was part of ongoing efforts to optimize our business to facilitate our strategies, this improved facility provides additional flexibility for our business as we move through a very unusual year. As we worked through this amendment and the COVID-19 crisis escalated, our banks have continued to express their strong support.”