Alico, Inc. Announces Amendment to Credit Agreement Supporting Strategic Transformation
Alico (Nasdaq: ALCO) has secured Amendment No. 7 to its First Amended and Restated Credit Agreement with MetLife Investment Management, , effective March 31, 2025. The amendment modifies financial covenants to better align with the company's ongoing strategic transformation and reduces Crop and Tree Insurance coverage requirements for the 2025/2026 harvest season, which is expected to generate cost savings.
The revised agreement creates a more flexible financial framework while maintaining disciplinary measures, supporting Alico's previously announced business transformation initiative.
Alico (Nasdaq: ALCO) ha ottenuto la Modifica n. 7 al suo Primo Accordo di Credito Modificato e Riformulato con MetLife Investment Management, efficace dal 31 marzo 2025. La modifica modifica i vincoli finanziari per allinearsi meglio alla trasformazione strategica in corso dell'azienda e riduce i requisiti di copertura per l'assicurazione delle colture e degli alberi per la stagione di raccolta 2025/2026, il che dovrebbe generare risparmi sui costi.
L'accordo rivisto crea un quadro finanziario più flessibile mantenendo misure disciplinari, sostenendo l'iniziativa di trasformazione aziendale precedentemente annunciata da Alico.
Alico (Nasdaq: ALCO) ha asegurado la Enmienda No. 7 a su Primer Acuerdo de Crédito Modificado y Restablecido con MetLife Investment Management, con efecto a partir del 31 de marzo de 2025. La enmienda modifica los convenios financieros para alinearse mejor con la transformación estratégica continua de la empresa y reduce los requisitos de cobertura de Seguro de Cultivos y Árboles para la temporada de cosecha 2025/2026, lo que se espera genere ahorros de costos.
El acuerdo revisado crea un marco financiero más flexible mientras mantiene medidas disciplinarias, apoyando la iniciativa de transformación empresarial previamente anunciada por Alico.
Alico (Nasdaq: ALCO)는 MetLife Investment Management와의 첫 번째 수정 및 재설정된 신용 계약에 대한 수정안 7호를 확보했으며, 이는 2025년 3월 31일부터 효력이 발생합니다. 이 수정안은 회사의 지속적인 전략적 변화를 더 잘 반영하기 위해 재무 약정을 수정하고, 2025/2026 수확 시즌에 대한 작물 및 나무 보험의 보장 요건을 줄여 비용 절감을 기대합니다.
개정된 계약은 징계 조치를 유지하면서 더 유연한 재무 프레임워크를 생성하여 Alico가 이전에 발표한 비즈니스 변혁 이니셔티브를 지원합니다.
Alico (Nasdaq: ALCO) a obtenu l'Amendement n° 7 à son Premier Accord de Crédit Modifié et Révisé avec MetLife Investment Management, qui prend effet le 31 mars 2025. Cet amendement modifie les engagements financiers afin de mieux s'aligner sur la transformation stratégique en cours de l'entreprise et réduit les exigences de couverture pour l'assurance des cultures et des arbres pour la saison de récolte 2025/2026, ce qui devrait générer des économies de coûts.
L'accord révisé crée un cadre financier plus flexible tout en maintenant des mesures disciplinaires, soutenant l'initiative de transformation commerciale précédemment annoncée par Alico.
Alico (Nasdaq: ALCO) hat die Änderung Nr. 7 zu seinem ersten geänderten und neu gefassten Kreditvertrag mit MetLife Investment Management gesichert, die am 31. März 2025 in Kraft tritt. Die Änderung ändert die finanziellen Vereinbarungen, um besser mit der laufenden strategischen Transformation des Unternehmens in Einklang zu stehen, und reduziert die Anforderungen an die Deckung von Ernte- und Baumversicherungen für die Erntezeit 2025/2026, was voraussichtlich zu Kosteneinsparungen führt.
Der überarbeitete Vertrag schafft einen flexibleren finanziellen Rahmen und behält gleichzeitig disziplinarische Maßnahmen bei, um Alicos zuvor angekündigte Unternehmensumwandlungsinitiative zu unterstützen.
- Expected cost savings from reduced insurance coverage requirements
- Increased financial flexibility through modified covenants
- None.
FORT MYERS, Fla., April 01, 2025 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or “the Company”) (Nasdaq: ALCO) today announced it has entered into an Amendment No. 7 (the “Amendment”) to the First Amended and Restated Credit Agreement, between the Company, and by MetLife Investment Management, LLC for each of Metropolitan Life Insurance Company and New England Life Insurance Company, dated as of December 1, 2014 and as amended to date (collectively, the “Credit Agreement”).
The Amendment, which became effective March 31, 2025, adjusts certain financial covenants to support the Company’s evolving business model as it progresses through its strategic transformation. Among other items, the Amendment reduces the level of Crop and Tree Insurance coverage requirements required for the 2025/2026 harvest season, which is expected to result in cost savings for Alico.
John Kiernan, President and Chief Executive Officer of the Company, stated, “These amendments to our credit agreement better align our financial covenants with the business transformation we announced earlier this year. By adjusting our covenant structure and modifying our catastrophic insurance requirements for our citrus operations, we've created a more flexible financial framework while maintaining appropriate discipline. Our lenders have been supportive partners in recognizing our evolving needs during this transformation process and we look forward to continuing to work with them through and beyond our transformation.”
About Alico
Alico, Inc. currently operates two divisions: Alico Citrus, currently one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. While Alico Citrus will wind down operations after the 2024/2025 harvest due to environmental and financial challenges, Alico remains committed to Florida’s agriculture industry, and will focus on its long-term diversified land usage and real estate development strategy. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company’s strategic transformation, the Company’s future cash flow and cash reserves, the future use and estimated value of the Company’s land holdings, the Company’s ability to obtain requisite local, state, and federal approval of the development application[s] and execute on its plan to develop “the Corkscrew Grove Villages”, the Company’s expected future profitable growth, expectations for the management of certain acres by third-party caretakers, and any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “if,” “will,” “should,” “expects,” “plans,” “hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: our implementation of our planned strategic transformation; our plan to wind down our citrus production operations to focus on our long-term diversified land usage and real estate development strategy; our ability to secure necessary regulatory approvals and permits for land development projects, effectively manage and allocate resources to new business initiatives, attract and retain skilled personnel with expertise in diversified land usage and real estate development, navigate potential market fluctuations and economic conditions, maintain strong relationships with lenders and continue to satisfy covenants and conditions under current loan agreements and address potential environmental and zoning issues, and other challenges inherent in real estate development; our ability to increase our revenues from land usage and real estate development; adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms; risks related to our expected significant revenue shift to real estate development and diversified farming operations; our ability to effectively perform grove management services, or to effectively manage our portfolio of groves; our relationship with Tropicana; if certain criteria are not met under one of our contracts with Tropicana, we could experience a significant reduction in revenues and cash flows; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; harm to our reputation; tax risks associated with a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; Environmental, Social and Governance issues, including those related to climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting; macroeconomic conditions, such as rising inflation and the deadly conflicts in Ukraine and Israel; system security risks, data protection breaches, cybersecurity incidents and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and certain of the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2025. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Investor Contact:
John Mills
ICR
(646) 277-1254
InvestorRelations@alicoinc.com
Brad Heine
Chief Financial Officer
(239) 226-2000
bheine@alicoinc.com
FAQ
What changes were made to Alico's (ALCO) credit agreement in March 2025?
How will the March 2025 credit amendment benefit Alico (ALCO) financially?
When does Alico's (ALCO) new insurance coverage requirement take effect?
Who are Alico's (ALCO) lending partners in the amended credit agreement?
