June 7 (Reuters) - Graincorp Ltd GNC.AX :
* ENTERS INTO 10 YEAR CONTRACT TO MANAGE EASTERN AUSTRALIAN GRAIN PRODUCTION RISK
* CONTRACT WILL TAKE EFFECT FROM 2019-20 FINANCIAL YEAR.
* SUBJECT TO AN AGGREGATE NET LIMIT OF PRODUCTION PAYMENTS TO EITHER GRAINCORP OR CONTRACT COUNTERPARTY OF AUD$270 MILLION OVER 10 YEAR TERM
* EXCLUDING PRODUCTION PAYMENTS, TOTAL PRE-TAX ANNUAL COST OF CONTRACT TO GRAINCORP IS EXPECTED TO BE LESS THAN AUD$10 MILLION
* CONTRACT IS NOT SUBJECT TO A RIGHT OF TERMINATION IN EVENT OF A CHANGE OF CONTROL OF GRAINCORP
* DURING TERM PAYMENT OF $15/TONNE WILL BE MADE FOR EACH TONNE OF ACTUAL EAST COAST OF AUSTRALIA WINTER CROP PRODUCTION IN ANY GIVEN YEAR
* CONTRACT COUNTERPARTY IS WHITE ROCK INSURANCE (SAC) LTD
* FIXED PAYMENT OF AUD$15 PER TONNE WILL BE MADE IN ANY GIVEN YEAR WHICH IS BELOW AN AGREED LOWER PRODUCTION THRESHOLD OF 15.3 MILLION TONNES
* FIXED PAYMENT OF AUD$15 PER TONNE WILL BE MADE IN ANY GIVEN YEAR WHICH IS ABOVE AN AGREED UPPER PRODUCTION THRESHOLD OF 19.3 MILLION TONNES