11:44 AM EDT, 05/22/2025 (MT Newswires) -- Ag Growth International ( AGGZF ) on Thursday announced a $75 million bought-deal offering of senior subordinated unsecured debentures at $1,000 each, which may increase to a maximum $86.25 million if the over-allotment option is fully exercised.

The debentures, which bear annual interest of 7.5%, have a maturity date of June 30, 2030.

Proceeds will be used to pay down debt.

Ag Growth ( AGGZF ) also reaffirmed its 2025 outlook, first announced earlier this month. This includes adjusted EBITDA guidance for the full year of at least $225 million and adjusted EBITDA guidance for the second quarter in the range of $50-$55 million.

"Today's announcement supports the execution of our international Commercial growth strategy without compromising our commitment to responsible debt management," said Jim Rudyk, chief financial officer. "This debenture issuance enhances our flexibility and capacity to respond to attractive Commercial segment growth opportunities in key international regions, reinforcing our strong market position. We plan to apply the net proceeds against our senior credit lines, so we do not expect any changes to our overall debt levels or leverage ratios from today's announcement. We remain focused on managing our balance sheet and lowering our leverage ratios throughout 2025."

The company's shares were last seen down $0.46 to $37.11 on the Toronto Stock Exchange.

Price: 37.11, Change: -0.46, Percent Change: -1.22