Alico, Inc. Announces Amendment to its Revolving Line of Credit with MetLife
Alico, Inc. (Nasdaq: ALCO) has amended its Credit Agreement with MetLife, effective September 17, 2024. Key changes include:
1. Increased borrowing capacity under the revolving line of credit (RLOC) from $25 million to $95 million
2. Extended maturity date of the RLOC to May 1, 2034
3. The RLOC is secured by approximately 36,800 gross acres of citrus land
4. Alico paid off current borrowings under the $70 million working capital line of credit with Rabo Agrifinance, Inc.
5. Borrowings under the RLOC bear interest at one-month Term SOFR plus a 2.20% credit spread
6. Quarterly interest payments begin October 1, 2024, with no principal payments due until maturity
This amendment provides Alico with increased financial flexibility and liquidity for the next decade.
Alico, Inc. (Nasdaq: ALCO) ha modificato il suo Accordo di Credito con MetLife, a partire dal 17 settembre 2024. Le principali modifiche includono:
1. Aumento della capacità di prestito sotto la linea di credito revolving (RLOC) da 25 milioni a 95 milioni di dollari
2. Estensione della data di scadenza della RLOC al 1 maggio 2034
3. La RLOC è garantita da circa 36.800 acri lordi di terre agrumetizie
4. Alico ha estinto i prestiti correnti sotto la linea di credito per il capitale circolante di 70 milioni di dollari con Rabo Agrifinance, Inc.
5. I prestiti sotto la RLOC maturano interessi pari al tasso SOFR a un mese più un margine di credito del 2,20%
6. I pagamenti trimestrali degli interessi iniziano il 1 ottobre 2024, senza pagamenti di capitale fino alla scadenza
Questa modifica fornisce ad Alico una maggiore flessibilità finanziaria e liquidità per il prossimo decennio.
Alico, Inc. (Nasdaq: ALCO) ha modificado su Acuerdo de Crédito con MetLife, a partir del 17 de septiembre de 2024. Los cambios clave incluyen:
1. Aumento de la capacidad de endeudamiento bajo la línea de crédito rotativa (RLOC) de 25 millones a 95 millones de dólares
2. Extensión de la fecha de vencimiento de la RLOC hasta el 1 de mayo de 2034
3. La RLOC está asegurada por aproximadamente 36,800 acres de tierras cítricas
4. Alico ha pagado los préstamos actuales bajo la línea de crédito de capital de trabajo de 70 millones de dólares con Rabo Agrifinance, Inc.
5. Los préstamos bajo la RLOC devengan intereses al SOFR a un mes más un margen de crédito del 2,20%
6. Los pagos de intereses trimestrales comienzan el 1 de octubre de 2024, sin pagos de capital hasta el vencimiento
Esta modificación proporciona a Alico una mayor flexibilidad financiera y liquidez durante la próxima década.
Alico, Inc. (Nasdaq: ALCO)는 2024년 9월 17일부로 MetLife와의 신용계약을 수정했습니다. 주요 변경 사항은 다음과 같습니다:
1. 회전 신용 한도(RLOC)의 대출 용량 증가를 2,500만 달러에서 9,500만 달러로 조정
2. RLOC의 만기일 연장을 2034년 5월 1일로 설정
3. RLOC는 약 36,800 에이커의 감귤 재배지로 담보됨
4. Alico는 Rabo Agrifinance, Inc.와의 7천만 달러 자본금 신용 한도에 대한 현재 차입금을 상환함
5. RLOC에 대한 차입금은 1개월 Term SOFR에 2.20%의 신용 스프레드를 더한 이자를 부담
6. 분기별 이자 지급은 2024년 10월 1일부터 시작되며, 만기일까지 원금 지급은 없음
이 수정은 Alico에게 향후 10년 간의 재정적 유연성과 유동성을 제공합니다.
Alico, Inc. (Nasdaq: ALCO) a modifié son Contrat de Crédit avec MetLife, à compter du 17 septembre 2024. Les principales modifications comprennent :
1. Augmentation de la capacité d'emprunt sous la ligne de crédit revolving (RLOC) de 25 millions à 95 millions de dollars
2. Prolongation de la date d'échéance de la RLOC jusqu'au 1er mai 2034
3. La RLOC est garantie par environ 36 800 acres de terres agricoles
4. Alico a remboursé les emprunts en cours sous la ligne de crédit pour fonds de roulement de 70 millions de dollars avec Rabo Agrifinance, Inc.
5. Les emprunts sous la RLOC portent intérêt au taux SOFR à un mois, plus une marge de crédit de 2,20 %
6. Les paiements d'intérêts trimestriels commenceront le 1er octobre 2024, sans paiement de capital jusqu'à l'échéance
Cette modification offre à Alico une flexibilité financière et une liquidité accrues pour la prochaine décennie.
Alico, Inc. (Nasdaq: ALCO) hat am 17. September 2024 sein Kreditabkommen mit MetLife geändert. Wichtige Änderungen umfassen:
1. Erhöhung der Kreditaufnahme unter der revolvierenden Kreditlinie (RLOC) von 25 Millionen auf 95 Millionen US-Dollar
2. Verlängerung des Fälligkeitsdatums der RLOC bis zum 1. Mai 2034
3. Die RLOC ist durch etwa 36.800 Hektar Zitrusland abgesichert
4. Alico hat die aktuellen Darlehen unter der 70 Millionen US-Dollar großen Betriebsmittellinie bei Rabo Agrifinance, Inc. zurückgezahlt
5. Die Darlehen unter der RLOC beziehen Zinsen in Höhe von einem Monat Term SOFR zuzüglich einer Kreditspanne von 2,20%
6. Die vierteljährlichen Zinszahlungen beginnen am 1. Oktober 2024, ohne dass bis zur Fälligkeit Hauptzahlungen fällig werden
Diese Änderung bietet Alico erhöhte finanzielle Flexibilität und Liquidität für das nächste Jahrzehnt.
- Increased borrowing capacity from $25 million to $95 million
- Extended maturity date of the RLOC to May 1, 2034
- Secured by 36,800 gross acres of citrus land, demonstrating strong asset base
- Improved financial flexibility and liquidity for the next decade
- No principal payments due until maturity, easing short-term financial burden
- Increased debt exposure with larger credit line
- Interest rate tied to SOFR plus 2.20% credit spread, potentially leading to higher interest expenses
Insights
Alico's amendment to its credit agreement with MetLife is a significant financial move. The increase in borrowing capacity from
The replacement of the Rabo Agrifinance working capital line with this expanded MetLife facility consolidates Alico's debt structure. The new interest rate, based on SOFR plus
This credit facility amendment is tailored to Alico's unique position as a major citrus producer with significant land assets. The extended credit line provides a important financial buffer against the inherent risks in agriculture, such as extreme weather events or market fluctuations. It's particularly noteworthy that the credit is secured by citrus land, indicating MetLife's confidence in the long-term value of these agricultural assets.
The decade-long extension aligns with the long-term nature of citrus production, where trees take years to mature and produce optimal yields. This extended timeline also gives Alico flexibility to explore 'highest and best use' strategies for its real estate, potentially diversifying beyond pure agriculture. The move suggests a forward-thinking approach to asset management in the evolving landscape of large-scale agriculture and land use.
Alico's amended credit agreement significantly enhances its risk management profile. The nearly fourfold increase in revolving credit capacity provides a substantial safety net against unforeseen events, particularly important in the volatile agricultural sector. This expanded liquidity buffer is essential given the increasing frequency and severity of weather-related risks that can impact citrus production.
The extended maturity to 2034 reduces refinancing risk and provides stability during potential market downturns. However, it's important to note that while this facility offers flexibility, it also increases Alico's leverage. The company must carefully manage this expanded credit to avoid overextension. The quarterly interest payments without principal reduction until maturity could lead to a significant balloon payment in 2034, requiring strategic long-term financial planning to address.
FORT MYERS, Fla., Sept. 17, 2024 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico”) (Nasdaq: ALCO) announced that, effective September 17 2024, it has amended its Credit Agreement (the “Amendment”) with Metropolitan Life Insurance Company, and New England Life Insurance Company (collectively “MetLife”), which, among other things (i) increases the borrowing capacity under the revolving line of credit (the “RLOC”) from
Borrowings under the RLOC bear interest at a rate of the one (1) Month Term Secured Overnight Financing Rate (“SOFR”) plus a SOFR Credit Spread of
John Kiernan, Alico’s President and CEO stated, “This transaction secures our financial flexibility by extending the maturity of our revolving line of credit until May 1, 2034 and demonstrates the continued support and confidence in Alico by MetLife. We believe that the revolving line of credit provides us with ample liquidity, should we need it, to meet significant weather events over the next decade; as well as to ensure that we have time to realize the long-term highest and best use of our real estate assets. We have valued our working relationship with Rabo Agrifinance and look forward to continuing to work closely with MetLife over the next decade.”
LEARN MORE ABOUT ALICO INC.
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. 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 our amended credit agreement with MetLife, future liquidity, business strategy, plans and objectives of management for future operations or 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 “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: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; 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; ESG 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, cyber-attacks 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 the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2023, and in our Quarterly Reports on Form 10-Q filed with the SEC. 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 RELATIONS CONTACT
Any questions can be emailed to: investorrelations@alicoinc.com
FAQ
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