Alliance Select seeks govt guarantee for dollar loan

Canned fish exporter Alliance Select Foods International has sought a guarantee from the government to cover the loan it made for the acquisition of a US-based company. In a statement to the Philippine Stock Exchange on Friday, Alliance Select said it signed an agreement with the Philippine Export-Import Credit Agency, also known as the Trade and Investment Development Corp., for a 90-percent guarantee cover on principal for its $4.5-million term loan. The guarantee will be effective for seven years inclusive of the one-year grace period on principal. It is applicable for funds raised through local financial institutions. "The company will utilize the funds raised to partially pay for its acquisition of Spence & Co., Ltd., a Brockton, USA based processor of smoked fish," the company said. In April, Alliance Select disclosed that it would pay $8.5 million in cash to acquire Spence & Co. The deal is expected to be closed in August this year. The acquisition will also be funded through a combination of debt and equity. In 2010 Spence & Co. recorded net sales of $11.3 million, Alliance Select said. -- CMA/OMG, GMA News