Full Circle Commits RiceBran Debt Facility
RiceBran, a global producer and marketing of value added products derived from rice bran, announced it signed a conditional commitment letter with Full Circle Capital for an $8 million three year debt facility to provide working capital and term loans to facilitate future growth. The financing will take the form of a $3.5 million senior secured revolver, a $2.5 million term loan (term Loan A) and up to $2 million of additional term loans (term loan B).
The financing is subject to usual terms and conditions including but not limited to the negotiation, execution and delivery of definitive documents acceptable to both parties, completion of due diligence including the determination by Full Circle Capital of no adverse material changes prior to closing, and satisfaction of closing conditions set forth in the commitment letter and definitive documents. Both parties are working towards a closing early in the second quarter of 2015.
Dale Belt, CFO, commented, “We are pleased to have entered into this commitment letter from Full Circle Capital. This financing will replace the high interest $8 million revolving credit facility we paid off in mid-2014. We expect to close this transaction in the coming weeks and use the resulting funding to support business growth throughout this year and into 2016. While final documents have not yet been completed, we expect a double digit reduction in effective interest compared to the previous facility.”
RiceBran Technologies is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran.