SunOpta in agreement with Oaktree for $85M investment
SunOpta announced that it has entered into an agreement with funds managed by Oaktree Capital Management. In reaching this agreement with Oaktree, SunOpta has concluded the previously announced review of strategic alternatives for the company. Under the agreement, Oaktree invested $85M in SunOpta in the form of exchangeable preferred shares. Proceeds from the investment have been used to reduce the company's 2nd lien debt and to increase financial flexibility. In partnership with representatives of Oaktree and with representatives of Engaged Capital, SunOpta is conducting a review of the company's operations, management and governance, with the objective of "maximizing the Company's ability to deliver long-term value to its shareholders." The company expects to provide an update on these efforts in conjunction with its third quarter earnings release. SunOpta's board has appointed two Oaktree-nominated independent directors, Dean Hollis and Al Bolles, Ph.D., to the board. Oaktree is investing in the company by purchasing $85M of newly created Series A exchangeable preferred shares issued by SunOpta Foods as well as the right to purchase up to 3M shares of SunOpta common stock in the open market for a period of one year.