SunOpta, a global company focused on organic, non-genetically modified and specialty foods, entered into a new five-year credit agreement for a senior secured asset-based revolving credit facility in the maximum aggregate principal amount of $350 million, subject to borrowing base capacity.

SunOpta said the facility is provided by a syndicate of banks, including Bank of America, Rabobank Nederland, Canadian Branch, Bank of Montreal, JPMorgan Chase and Wells Fargo.

This new global credit facility replaces SunOpta’s previous North American credit facilities, comprised of a $165 million facility and a C$10 million ($7.2 million) facility, that were set to expire January 27, 2017, and its €92.5 million ($104.3 million) multipurpose European credit facilities that were due on demand with no set maturity date.

The new expanded credit facility will be used to support the working capital and general corporate needs of SunOpta’s global operations, in addition to funding future strategic initiatives. In addition, subject to meeting certain conditions, SunOpta may request to increase the total lending commitments under the new facility to a maximum aggregate principal amount not to exceed $450 million.

“We are extremely pleased to complete this financing with our lenders as we further solidify our capital structure across our integrated global operations,” said Rob McKeracher, CFO of SunOpta. “By consolidating the North American and European standalone facilities that have served our foods business for the past seven years, we will benefit from enhanced flexibility allowing us to continue to execute on our core strategy of maximizing our field to table, ‘two-touch’, business model while supporting the global growth of our business.”

Borrowings under the new credit facility will bear interest based on various reference rates including LIBOR plus an applicable margin. The applicable margin in the new facility ranges from 1.25% to 1.75% for loans bearing interest based on LIBOR, compared to a range of 1.75% to 2.50% under the previous credit facility in North America. The applicable margin is set quarterly based on average borrowing availability and will be initially set at 1.50% for loans bearing interest based on LIBOR.