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S.D. Soybean amends, restates agreements; gets new $90 million note
By William Gullotti
Buffalo, N.Y., Sept. 22 – South Dakota Soybean Processors, LLC amended and restated its credit agreement and related $12 million revolving note with lender CoBank, ACB on Sept. 20 that included a new $90 million advance term note, according to an 8-K filing with the Securities and Exchange Commission.
New advance term note
Borrowings under the new $90 million advance term note will bear interest at SOFR plus 255 basis points.
The availability period for the note terminates Aug. 1, 2024. Repayment will commence Oct. 20, 2024 in $4.5 million semiannual installments, with the remaining balance due March 20, 2028.
The proceeds of the advance term note will be used to finance the company’s investment in subsidiary High Plains Partners, LLC.
Restated revolving note
On the same date, the company amended and restated its $12 million revolving term promissory note, entered April 27, 2022.
The amendment cut the company’s semiannual repayment installments from $2 million to $600,000, effective at signing.
All other material terms and conditions remained unchanged, including the March 20, 2028 maturity date.
Facility borrowings bear interest at SOFR plus 255 bps, and there is a 40 bps facility fee on the unused commitments.
Restated credit agreement
The restated credit agreement, under which both notes are issued, was originally dated Dec. 28, 2016.
The amendments increased the company’s working capital covenant to $17 million from $15 million and allow for investment of up to $110 million into High Plains Partners.
The debt service coverage ratio remained at 1.2x, but the definition was revised to accommodate increased annual debt payments.
The Volga, S.D.-based value-added limited liability company of agricultural producers focuses on adding value to soybeans.
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