Alico, Inc. Enters Material Definitive Agreement
Ticker: ALCO · Form: 8-K · Filed: Sep 17, 2024 · CIK: 3545
Sentiment: neutral
Topics: debt, financing, agreement
Related Tickers: ALCO
TL;DR
ALCO inked a new credit deal, locking in future financing.
AI Summary
On September 17, 2024, Alico, Inc. entered into a Material Definitive Agreement, specifically a credit agreement, which creates a direct financial obligation for the company. This agreement is a significant financial event for Alico, Inc., impacting its balance sheet and future financial obligations.
Why It Matters
This filing indicates Alico, Inc. has entered into a new financial agreement, which could affect its borrowing capacity, interest expenses, and overall financial strategy.
Risk Assessment
Risk Level: medium — Entering into new financial obligations can introduce risks related to interest rate fluctuations, repayment capacity, and covenants that could impact operations.
Key Players & Entities
- Alico, Inc. (company) — Registrant
- September 17, 2024 (date) — Date of Report
FAQ
What type of material definitive agreement did Alico, Inc. enter into?
Alico, Inc. entered into a credit agreement, as indicated by the filing.
What is the date of the earliest event reported in this 8-K filing?
The earliest event reported is dated September 17, 2024.
What is the Central Index Key (CIK) for Alico, Inc.?
The CIK for Alico, Inc. is 0000003545.
What is Alico, Inc.'s Standard Industrial Classification (SIC) code?
Alico, Inc.'s SIC code is 0100, which corresponds to AGRICULTURE PRODUCTION - CROPS.
What is the fiscal year end for Alico, Inc.?
Alico, Inc.'s fiscal year ends on September 30.
Filing Stats: 777 words · 3 min read · ~3 pages · Grade level 10.8 · Accepted 2024-09-17 16:02:12
Key Financial Figures
- $25 million — g line of credit (the "RLOC Loan") from $25 million to $95 million, subject to such limitat
- $95 m — t (the "RLOC Loan") from $25 million to $95 million, subject to such limitations on d
- $70 million — id off its current borrowings under the $70 million working capital line of credit, subject
- $1 million — nce shall be in an amount not less than $1 million. In any event of default under the loan
Filing Documents
- alco-20240917.htm (8-K) — 26KB
- 0000003545-24-000107.txt ( ) — 151KB
- alco-20240917.xsd (EX-101.SCH) — 2KB
- alco-20240917_lab.xml (EX-101.LAB) — 22KB
- alco-20240917_pre.xml (EX-101.PRE) — 13KB
- alco-20240917_htm.xml (XML) — 3KB
01. Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement. On September 17, 2024, Alico, Inc. (the "Company") entered into a Sixth Amendment to Credit Agreement (the "Amendment") in order to amend its amended and restated credit agreement dated as of December 1, 2014, as amended to date, by and among the Company, Alico Land Development, Inc., Alico Fruit Company, LLC, Metropolitan Life Insurance Company, and New England Life Insurance Company (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"). Among other things, the Amendment (i) increases the borrowing capacity under the revolving line of credit (the "RLOC Loan") from $25 million to $95 million, subject to such limitations on disbursements as set forth in the Amendment and (ii) extends the maturity date of its revolving credit facility thereunder to May 1, 2034 (the "Maturity Date"). The RLOC Loan is secured by real property, consisting of approximately 36,800 gross acres of citrus land. In addition, in connection with the Amendment, the Company paid off its current borrowings under the $70 million working capital line of credit, subject to cancellation of its outstanding letters of credit, with Rabo Agrifinance, Inc. and replaced the Rabo Agrifinance working capital line of credit, which was due to mature on November 1, 2025. In addition, under the Amendment, funds from the RLOC Loan may be used by the Company for general corporate purposes. The RLOC Loan floating interest rate shall be equal to the sum of (i) the RLOC SOFR Credit Spread (as defined in the Amendment) plus (ii) the United States One (1) Month Term Secured Overnight Financing Rate as determined by MetLife Investment Management, LLC. The RLOC Loan repayment shall be in interest only until the Maturity Date, and accrued interest on the outstanding principal balance shall be payable on October 1, 2024 and quarterly thereafter. Beginning August 25, 2025 and payable annually, the Company shall pay an unu
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: September 17, 2024 ALICO, INC. By: /s/ Bradley Heine Bradley Heine Chief Financial Officer