Alico obtains $182.5 million of term loans, $95 million of revolvers

By Marisa Wong

Madison, Wis., Dec. 5 – Alico, Inc. entered into a first amended and restated credit agreement with Metropolitan Life Insurance Co. and New England Life Insurance Co. for $182.5 million of term loans and $25 million in revolving credit commitments and a credit agreement with Rabo Agrifinance, Inc. for $70 million of revolving credit commitments.

The company entered into the credit agreements on Dec. 1, according to an 8-K filing with the Securities and Exchange Commission.

The MetLife credit agreement amends and restates an existing credit agreement entered into with Rabo on Sept. 8, 2010. Under the prior credit agreement, the company had $40 million of term loans, of which $33.5 million was outstanding, and $60 million in undrawn revolving credit commitments.

Of the new term loans, $125 million principal amount bears interest at 4.15% per year, and $57.5 million principal amount bears interest at a floating annual rate of Libor plus 150 basis points.

Quarterly amortization payments of $2.3 million will be payable until the term loans’ maturity on Nov. 1, 2029, when the remaining balance is due.

The Metlife revolver bears interest at a floating rate of Libor plus 150 bps quarterly and matures on Nov. 1, 2019.

The credit agreement requires the company to maintain a current ratio of not less than 1.5 to 1.0, a debt ratio of not greater than 0.625 to 1.0, minimum tangible net worth of $160 million and a debt service coverage ratio of not less than 1.1 to 1.0.

Rabo credit agreement

Depending on the company’s debt service coverage ratio from time to time, the Rabo revolver is subject to a commitment fee of 20 bps to 30 bps, and borrowings will bear interest at a floating rate of one-month Libor plus 175 bps to 250 bps.

The Rabo revolver matures on Nov. 1, 2016.

The Rabo credit agreement also requires the company to maintain a current ratio of not less than 1.5 to 1.0, a debt ratio of not greater than 0.625 to 1.0, minimum tangible net worth of $160 million and a debt service coverage ratio of not less than 1.1 to 1.0.

Proceeds from the Metlife facility and Rabo facility were used to finance a portion of Alico’s acquisition of Orange-Co, LP and repay some Orange-Co debt.

Alico is an agribusiness and land management company based in Fort Myers, Fla. Orange-Co owns citrus grove properties in Florida.

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