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8-K - FORM 8-K - VIDLER WATER RESOURCES, INC. | a58233e8vk.htm |
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
PICO HOLDINGS, INC. ANNOUNCES DEFINITIVE AGREEMENTS TO BUILD
AND OPERATE A CANOLA PROCESSING PLANT
AND OPERATE A CANOLA PROCESSING PLANT
(LA JOLLA, CALIFORNIA)December 30, 2010 PICO Holdings, Inc. (NASDAQ: PICO) announced today that
it has secured a $100 million nonrecourse, senior secured construction loan facility and
completed the acquisition of Northstar Agri Industries. PICO previously announced this transaction
in its press release on September 21, 2010. Northstar Agri Industries is an agribusiness concern
that will build and operate a canola processing plant with an integrated refinery near Hallock,
Minnesota. The plant is expected to be operational by the fourth quarter of 2012.
PICO Holdings has contributed approximately $60 million of equity for an 88% ownership interest in
Northstar Agri Industries.
The total cost of the canola processing plan and integrated refinery is estimated to be $160
million. ING Capital LLC will serve as the administrative agent and lead arranger for the $100
million credit facility. The credit facility is underwritten and includes a $10.5 million working
capital facility. PICO expects to close on the credit facility in Spring 2011.
Guaranteed Maximum Price construction, engineering, and technology contracts have been executed
with Karges-Faulconbridge Inc., McGough Industrial Construction LLC, and Crown Iron Works. Each
of these firms has significant prior experience in the industry. Construction is scheduled to
begin on January 10, 2011.
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PICO Holdings, Inc.
Canola Processing Plant
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Canola Processing Plant
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PICO is a diversified holding company. PICO seeks to acquire, build and operate businesses where
significant value can be created from the development of unique assets, and to acquire businesses
which we identify as undervalued and where our management participation in operations can aid in
the recognition of the businesss fair value, as well as create additional value. Our objective is
to maximize long-term shareholder value. We manage our operations to achieve a superior return on
net assets over the long term, as opposed to short-term earnings. Currently our two major
businesses are Vidler Water Company, a water resource development business, and Union Community
Partners, a developer of residential lots in selected California markets.
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PICO Holdings, Inc.
Canola Processing Plant
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Canola Processing Plant
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this press release that are forward-looking statements are based on current
expectations and assumptions that are subject to risks and uncertainties. Actual results could
differ materially because of factors such as: the commencement of construction and the progress
thereof; a softening in demand for canola oil; the ability of the project to secure customers for
its products at the rates and prices that are currently anticipated; prolonged weakness in the
overall U.S. and global economies; and the impact of international affairs. For further
information regarding risks and uncertainties associated with our business, please refer to the
Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk
Factors sections of our SEC filings, including our Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q, copies of which may be obtained by contacting us at (858) 456-6022 or at
http://investors.picoholdings.com. We undertake no obligation to (and we expressly disclaim any
obligation to) update our forward-looking statements, whether as a result of new information,
subsequent events, or otherwise, in order to reflect any event or circumstance that may arise after
the date of this press release. Readers are urged not to place undue reliance on these
forward-looking statements, which speak only as of the date of this press release.
# # #
CONTACT: Max Webb Chief Financial Officer (858) 456-6022 ext. 216