Calavo Growers enters into $80 million five-year revolving facility

By Marisa Wong

Morgantown, W.Va., June 20 – Calavo Growers, Inc. entered into an $80 million revolving credit agreement on June 14 with Bank of America, NA as administrative agent, Bank of America Merrill Lynch as joint lead arranger and sole bookrunner and Farm Credit West as joint lead arranger, according to an 8-K filing with the Securities and Exchange Commission.

The new syndicated senior unsecured revolving credit facility, which matures on June 14, 2021, replaces the company’s prior revolving credit facilities that were scheduled to expire on July 1. The prior facilities, totaling $65 million, were terminated upon closing of the new facility.

The new credit facility includes a $50 million accordion feature.

Borrowings will bear interest at Libor plus an applicable margin based on the company’s consolidated leverage ratio. The applicable margin can range from 100 basis points to 150 bps.

The facility also includes a commitment fee on the unused commitment amount at a rate of 0.15%.

The credit agreement contains the following financial covenants: a quarterly consolidated leverage ratio of not more than 2.50 to 1.00 and a quarterly consolidated fixed-charge coverage ratio of not less than 1.15 to 1.00.

The company’s obligations under the credit agreement are guaranteed by subsidiary Renaissance Food Group, LLC.

Based in Santa Paula, Calif., Calavo packages and distributes avocados and other fruits.

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