Lifecore Biomedical Amends and Extends Revolving Credit Facility with BMO
Lifecore Biomedical has announced an amendment and extension of its asset-based lending revolving credit facility with BMO. The amendment extends the facility term by three years to November 2027, simplifies and reduces interest rates, and provides greater flexibility regarding covenants and reporting requirements. This follows the company's recent $24.3 million private placement financing.
The company has also implemented operational initiatives including key management appointments, expansion of manufacturing capabilities through a new high-speed multi-purpose isolator filler, and securing new customer agreements, notably with Lindy Biosciences.
Lifecore Biomedical ha annunciato una modifica e un'estensione della sua linea di credito revolving basata su asset con BMO. La modifica estende il termine della linea di credito di tre anni, fino a novembre 2027, semplifica e riduce i tassi di interesse e offre maggiore flessibilità riguardo ai requisiti di convenzione e reporting. Questo arriva dopo il recente finanziamento tramite privato placement di 24,3 milioni di dollari.
L'azienda ha anche implementato iniziative operative che includono nuove nomine nel management, l'espansione delle capacità produttive con un nuovo riempitore isolatore multiuso ad alta velocità e la stipula di nuovi contratti con i clienti, in particolare con Lindy Biosciences.
Lifecore Biomedical ha anunciado una enmienda y extensión de su línea de crédito revolving basada en activos con BMO. La enmienda extiende el plazo de la línea de crédito por tres años, hasta noviembre de 2027, simplifica y reduce las tasas de interés, y proporciona mayor flexibilidad en cuanto a convenios y requisitos de informes. Esto sigue al reciente financiamiento de colocación privada de 24,3 millones de dólares de la compañía.
La empresa también ha implementado iniciativas operativas que incluyen nombramientos clave en la dirección, la expansión de las capacidades de fabricación a través de un nuevo llenador aislante multipropósito de alta velocidad, y la obtención de nuevos acuerdos con clientes, notablemente con Lindy Biosciences.
라이프코어 바이오메디컬은 BMO와의 자산 기반 대출 회전 신용 시설의 수정 및 연장을 발표했습니다. 이러한 수정은 시설 기간을 3년 연장하여 2027년 11월까지로 하며, 이자율을 간소화하고 낮추며, 약정 및 보고 요구 사항에 대한 유연성을 높입니다. 이는 회사의 최근 2,430만 달러 규모의 사모펀드 자금조달에 따른 것입니다.
회사는 또한 주요 경영진 임명, 고속 다목적 격리 충전기가 있는 제조 능력 확장, 그리고 Lindy Biosciences와의 고객 계약 체결을 포함한 운영 이니셔티브를 시행했습니다.
Lifecore Biomedical a annoncé un amendement et une extension de sa ligne de crédit revolving basée sur des actifs avec BMO. L'amendement prolonge la durée de la ligne de crédit de trois ans jusqu'en novembre 2027, simplifie et réduit les taux d'intérêt, et offre une plus grande flexibilité quant aux engagements et aux exigences de reporting. Cela fait suite au récent financement privé de 24,3 millions de dollars de l'entreprise.
L'entreprise a également mis en œuvre des initiatives opérationnelles, notamment des nominations clés au sein de la direction, l'expansion des capacités de fabrication grâce à un nouveau remplisseur isolant multi-usages à grande vitesse, et la sécurisation de nouveaux contrats clients, notamment avec Lindy Biosciences.
Lifecore Biomedical hat eine Änderung und Verlängerung seiner auf Vermögenswerten basierenden revolvierenden Kreditfazilität bei BMO angekündigt. Die Änderung verlängert die Laufzeit der Fazilität um drei Jahre bis November 2027, vereinfacht und senkt die Zinssätze und bietet mehr Flexibilität bezüglich der Covenants und Berichtspflichten. Dies folgt auf die kürzliche Platzierung von 24,3 Millionen Dollar durch das Unternehmen.
Das Unternehmen hat auch operative Initiativen umgesetzt, darunter wichtige Managementanpassungen, die Erweiterung der Produktionskapazitäten durch einen neuen Hochgeschwindigkeits-Multipurpose-Isolatorfüller sowie die Sicherung neuer Kundenverträge, insbesondere mit Lindy Biosciences.
- Extended credit facility term by three years to 2027
- Reduced and simplified interest rates on credit facility
- Successfully raised $24.3 million through private placement
- Expanded manufacturing capabilities with new high-speed isolator filler
- Secured new customer agreement with Lindy Biosciences
- None.
Insights
The amended credit facility with BMO represents a significant financial improvement for Lifecore. The three-year extension to 2027 combined with reduced interest rates will lower borrowing costs and improve cash flow flexibility. The simplified covenants and reporting requirements reduce administrative burden and provide operational flexibility.
This refinancing, coupled with the recent
BMO's willingness to extend favorable terms signals confidence in Lifecore's business model and growth trajectory. The improved financial position provides a stronger foundation for pursuing new opportunities in the expanding CDMO market while maintaining healthier liquidity.
Three-Year Term Extension Combined with Simplification and Reduction of Interest Rates Helps Further Strengthen Company’s Balance Sheet and Overall Financial Position
Builds Upon Other Recent Strategic Financial Activities, including
Company Continues to Build Strong Foundation for Execution of Growth Strategy; Highlighted by Strengthened Leadership, Improved Financial Position, Enhanced Capabilities, and Expanded Capacity
CHASKA, Minn., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) (“Lifecore”), a fully integrated contract development and manufacturing organization (“CDMO”), today announced that it has entered in an agreement with BMO, a leading provider of global investment and corporate banking services and one of North America’s largest banks, which amends and extends the terms of Lifecore’s existing asset-based lending (“ABL”) revolving credit facility entered into between Lifecore and BMO in December 2020. The amendment extends the term of the facility by three years to November 2027, as well as simplifying and reducing the interest rates, and providing flexibility for Lifecore as it relates to certain covenants and reporting requirements.
“BMO is a highly regarded global provider of corporate banking services and has been a trusted partner to Lifecore for more than 10 years. The willingness of the BMO team to extend and amend our existing revolving credit facility with advantageous terms demonstrates the bank’s confidence in our current business, as well as our ability to execute on our go-forward growth strategy,” said Ryan Lake, chief financial officer of Lifecore. “This ABL amendment is the latest positive strategic financial action executed by Lifecore, following our recent successful raising of
In recent months, Lifecore has also successfully executed a variety of operational and new business initiatives designed to reshape the company and best position it for continued growth in the rapidly expanding CDMO market. These have included key management team appointments, including CEO and CFO, expansion of manufacturing capabilities and capacity through the installation and qualification of its high-speed, multi-purpose 5-head isolator filler, and the signing of several new customers, highlighted by its high-profile agreement with Lindy Biosciences.
About Lifecore Biomedical
Lifecore Biomedical, Inc. (Nasdaq: LFCR) is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulations. As a leading manufacturer of premium, injectable-grade hyaluronic acid, Lifecore brings more than 40 years of expertise as a partner for global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories to bring their innovations to market. For more information about the company, visit Lifecore’s website at www.lifecore.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “might”, “will”, “should”, “can have”, “likely” and similar expressions are used to identify forward-looking statements. In addition, all statements regarding our anticipated future operating and financial expectations, customer opportunities and relationships are forward-looking statements. All forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially, including such factors among others, as the company’s ability to successfully enact its business strategies, including with respect to installation, capacity generation and its ability to attract demand for its services, and its ability expand its relationship with its existing customers or attract new customers; the impact of inflation on Lifecore’s business and financial condition; changes in business conditions and general economic conditions both domestically and globally, including rising interest rates and fluctuation in foreign currency exchange rates; Lifecore’s ability to access sufficient capital to fund its business strategies; and other risk factors set forth from time to time in Lifecore’s SEC filings, including, but not limited to, the Annual Report on Form 10-K for the year ended May 26, 2024 (the “2024 10-K”). For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in the 2024 10-K. Forward-looking statements represent management’s current expectations as of the date hereof and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.
FAQ
What are the new terms of Lifecore Biomedical's (LFCR) credit facility with BMO?
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