Increases Line of Credit Borrowing Capacity to $100 Million
SANTA PAULA, Calif.--(BUSINESS WIRE)--
On November 14, 2011, Limoneira Company (NASDAQ: LMNR), a leading
agribusiness with prime agricultural land and operations, real estate
and water rights in California, amended certain terms of its line of
credit with Rabobank, N.A. The maturity date was extended to June 30,
2018 from June 30, 2013, and the borrowing capacity was increased to
$100 million from $80 million, subject to underlying collateral value.
The interest rate for the amended line of credit will be LIBOR plus
1.80% beginning July 1, 2013 until the maturity date. Currently, the
interest rate on the line of credit is LIBOR plus 1.50% and the
principal balance is approximately $54 million at October 31, 2011.
Additionally, on November 14, 2011 Limoneira entered into a forward
interest rate swap to manage the variable interest rate risk associated
with the amended Rabobank line of credit. The forward interest rate swap
establishes a fixed interest rate of 4.30% on $40 million of outstanding
line of credit borrowings beginning July 1, 2013 until June 30, 2018.
Limoneira currently has an interest rate swap which locks in the
interest rate on $42 million of outstanding line of credit borrowings at
5.13% until June 30, 2013.
Additionally, effective November 1, 2011, Limoneira amended the interest
rate on one of the term loans it has with Farm Credit West, FLCA to a
fixed rate of 3.65% for three years. The interest rate for this loan had
been 6.73% until October 31, 2011 and would have converted to a variable
rate on November 1, 2011. The balance of the term loan is approximately
$9 million at October 31, 2011 and it requires monthly principal and
interest installments until October 2035.
"We are pleased with the amended terms of our credit agreements and
believe they are a reflection of our strong business fundamentals and
the solid relationships we have with our banking partners," stated Joe
Rumley, Chief Financial Officer of Limoneira. "The amendments provide us
with additional financial flexibility to make strategic investments in
our business and manage our borrowing costs."
About Limoneira Company
Limoneira Company, a 118-year-old international agribusiness
headquartered in Santa Paula, California, has grown to become one of the
premier integrated agribusinesses in the world. Limoneira (pronounced lē
mon΄âra), is a dedicated sustainability company with approximately 6,850
acres of rich agricultural lands, real estate properties and water
rights in California. The Company is a leading producer of lemons,
avocados, oranges, and other specialty crops that are enjoyed throughout
the world. For more about Limoneira Company, visit www.limoneira.com.
ICR
John Mills, 310-954-1105
Senior Managing Director
Source: Limoneira Company
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