Alico, Inc. (Nasdaq: ALCO) announced that, effective September 17, 2024, it has amended its Credit Agreement (“Amendment”) with Metropolitan Life Insurance Company and New England Life Insurance Company (collectively “MetLife”). The Amendment increases the borrowing capacity of the revolving line of credit (RLOC) from $25 million to $95 million and extends the RLOC’s maturity date to May 1, 2034. The RLOC is secured by approximately 36,800 acres of citrus land.
Additionally, Alico paid off its $70 million working capital line of credit with Rabo Agrifinance, Inc. and canceled its outstanding letters of credit. The company replaced the Rabo Agrifinance line of credit, which was set to mature on November 1, 2025, with the amended MetLife RLOC.
Borrowings under the RLOC will accrue interest at the one-month Term Secured Overnight Financing Rate (SOFR) plus a SOFR Credit Spread of 2.20%. Accrued interest will be payable quarterly, starting October 1, 2024, with no principal payments due until the maturity date.
John Kiernan, Alico’s President and CEO, commented: “This transaction enhances our financial flexibility by extending the maturity of our revolving line of credit until 2034, highlighting MetLife’s continued support and confidence in Alico. The revolving credit line ensures we have sufficient liquidity to handle major weather events in the coming decade while allowing time to maximize the long-term value of our real estate assets. We appreciate our working relationship with Rabo Agrifinance and look forward to continued collaboration with MetLife.”
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Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Learn more about Alico
