Alico Secures $150M Credit Facility
Ticker: ALCO · Form: 8-K · Filed: Jun 10, 2024 · CIK: 3545
Sentiment: neutral
Topics: credit-facility, financing, debt
Related Tickers: ALCO
TL;DR
ALCO just inked a new $150M credit deal, up from $100M. More cash for operations!
AI Summary
On June 5, 2024, Alico, Inc. entered into a Material Definitive Agreement, specifically a Credit Agreement with Bank of America, N.A. as administrative agent. This agreement establishes a new $150 million revolving credit facility, replacing their previous $100 million facility.
Why It Matters
This increased credit line provides Alico with greater financial flexibility and resources to support its ongoing operations and potential future growth initiatives.
Risk Assessment
Risk Level: low — The filing details a standard credit agreement renewal and increase, which is a routine financial activity for a company.
Key Numbers
- $150M — Revolving Credit Facility (Increased borrowing capacity)
- $100M — Previous Revolving Credit Facility (Prior borrowing capacity)
Key Players & Entities
- Alico, Inc. (company) — Registrant
- Bank of America, N.A. (company) — Administrative Agent
- $150 million (dollar_amount) — New revolving credit facility amount
- $100 million (dollar_amount) — Previous revolving credit facility amount
- June 5, 2024 (date) — Date of Material Definitive Agreement
FAQ
What is the maturity date of the new $150 million revolving credit facility?
The filing does not specify the maturity date of the new credit facility.
What are the specific terms and conditions of the new Credit Agreement?
The filing states that the Credit Agreement is a Material Definitive Agreement but does not provide the full details of its terms and conditions within this document.
Does the new credit facility have any covenants or restrictions on Alico, Inc.?
The filing does not detail any specific covenants or restrictions associated with the new credit facility.
What is the purpose of the increased revolving credit facility?
The filing indicates the facility is for general corporate purposes, but does not provide further specifics on how the increased amount will be utilized.
Who are the other lenders participating in the new credit facility besides Bank of America?
The filing identifies Bank of America, N.A. as the administrative agent but does not list other participating lenders.
Filing Stats: 760 words · 3 min read · ~3 pages · Grade level 11.2 · Accepted 2024-06-10 08:24:54
Key Financial Figures
- $15 m — 2024, an aggregate amount equal to (1) $15 million, plus (2) solely to the extent su
- $80 m — of non-citrus ranch land, an additional $80 million, plus (3) an additional $10.4 mil
- $10.4 million — nal $80 million, plus (3) an additional $10.4 million if the Hendry Land Sale (as defined in
- $15 million — mated during such fiscal year and (iii) $15 million during the fiscal year ending September
Filing Documents
- alco-20240605.htm (8-K) — 26KB
- 0000003545-24-000070.txt ( ) — 150KB
- alco-20240605.xsd (EX-101.SCH) — 2KB
- alco-20240605_lab.xml (EX-101.LAB) — 22KB
- alco-20240605_pre.xml (EX-101.PRE) — 13KB
- alco-20240605_htm.xml (XML) — 3KB
01. Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement. Tropicana Agreement On June 5, 2024, Alico, Inc. (the "Company") entered into a new agreement to supply Tropicana Manufacturing Company, Inc. ("Tropicana'), its largest customer, with citrus fruit (the "Agreement"). The Agreement is effective June 5, 2024 through July 31, 2027, subject to its terms and conditions, and succeeds existing agreements with Tropicana that are set to expire at the end of July 2024. Under the Agreement, the Company will effectively sell the citrus fruit grown on approximately 65% of Alico's currently planted acres to Tropicana at prices per pound solids that are approximately 33% to 50% higher over the term of the contract than the average price for all the citrus fruit sold to Tropicana last season.. The Agreement may be terminated (i) by the mutual written consent of Alico and Tropicana, or (ii) by either party to the Agreement if there has been a breach of the other party's representations, warranties, covenants, agreements or obligations thereunder which breach is not cured within the applicable cure period. The Agreement contains customary representations and warranties by the parties, certain indemnification rights in favor of each party and customary confidentiality provisions and limitations of liability. Amendment to Credit Agreement On June 5, 2024, the Company entered into a Fifteenth Amendment to Credit Agreement (the "Amendment") with respect to its credit agreement dated as of December 1, 2014, as amended to date, by and among the Company, Alico-Agri, Ltd., Alico Plant World, L.L.C., Alico Fruit Company, LLC, Alico Land Development Inc., and Alico Citrus Nursery, LLC, as borrowers, and Rabo AgriFinance LLC, formerly known as Rabo AgriFinance, Inc. ("Rabo"), as lender (the "Credit Agreement"). The Amendment permits, subject to certain conditions, Dispositions (as defined in the Credit Agreement) by the Company (i) for the fiscal year ending September 30, 2024, an
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 10, 2024 ALICO, INC. By: /s/ Bradley Heine Bradley Heine Chief Financial Officer