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 $25 million to $95 million and (ii) now extends the maturity date of the RLOC to May 1, 2034. The RLOC 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.
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 2.20%. Accrued interest on the outstanding principal balance of the RLOC is payable quarterly beginning October 1, 2024 and no principle payments are due until maturity.
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 ...
