SunOpta gets $85 mln from Oaktree Capital to repay debt (updated)

SunOpta

07/10/2016 19:46

(Adds details) 
    Oct 7 (Reuters) - Canadian organic food company SunOpta Inc 
 SOY.TO   STKL.O  said it has got $85 million from investment 
manager Oaktree Capital Management LP, in exchange for preferred 
shares, to pay off its second lien debt. 
    In reaching the agreement with Oaktree, SunOpta said it has 
concluded the previously announced review of strategic 
alternatives for the company.  urn:newsml:reuters.com:*:nBw89KMBSa 
    The company's U.S.-listed shares were down 9.4 percent at 
$6.34, and its Toronto-listed shares were down 9.2 percent at 
C$8.40 in afternoon trading. 
    Brampton, Ontario-based SunOpta had hired financial and 
legal advisers in June to explore strategic alternatives, months 
after its largest shareholder Tourbillon Capital Partners LP 
urged the company to sell itself due to its frustration with the 
company's performance.  urn:newsml:reuters.com:*:nL4N19J44B 
    After Tourbillon made the first move, other hedge fund 
investors such as West Face Capital and Engaged Capital 
pressured the company to sell itself.  urn:newsml:reuters.com:*:nL2N1BR0WV 
    SunOpta also announced changes to its board on Friday, one 
of which is the addition of two Oaktree-nominated independent 
directors, Dean Hollis and Al Bolles. 
    Rothschild Inc is acting as financial adviser to SunOpta and 
Davies Ward Phillips & Vineberg LLP and Stoel Rives are acting 
as its legal advisers. Oaktree is represented by Kirkland & 
Ellis LLP and Stikeman Elliott LLP. 
 
 (Reporting by Vishaka George in Bengaluru; Editing by Shounak 
Dasgupta) 
 ((vishaka.george@thomsonreuters.com; within U.S. +1 646 223 
8780, outside U.S. +91 80 6749 1130; Reuters Messaging: 
vishaka.george.thomsonreuters.com@reuters.net)) 
 
Keywords: HEDGEFUNDS SUNOPTA/RESTRUCTURING