Limoneira obtains $75 million revolving credit facility supplement

By Sarah Lizee

Olympia, Wash., Feb. 1 – Limoneira Co. entered into a revolving credit facility supplement on Jan. 29 with Farm West, PCA that provides for a borrowing capacity of $75 million, according to an 8-K filing with the Securities and Exchange Commission.

The supplement amends, restates and replaces the $60 million revolving credit facility supplement entered into by the company and Farm West on June 19, 2017 under the company’s master loan agreement.

The initial interest rate was 3.41%, which was automatically adjusted on Feb. 1 and will be adjusted on the first day of each following month. The interest rate will be based on one-month Libor plus an applicable margin ranging from 160 basis points to 235 bps, depending on the ratio of current assets plus the remaining available commitment divided by current liabilities.

There is an unused commitment fee that ranges from 15 bps to 25 bps.

On July 1 and on each one-year anniversary after that, the company has the option to convert the Libor-based interest rate to a variable interest rate.

The supplement matures on July 1, 2022.

Debt under the supplement is secured by a first-lien on some of the company’s agricultural properties in Tulare and Ventura counties in California and some of the company’s building fixtures and improvements and investments in mutual water companies associated with the pledged agricultural properties.

Limoneira is a Santa Paula, Calif.-based agribusiness with prime agricultural land and operations, real estate and water rights in California.

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