S&W Seed Secures $7.5 Million Credit Line With Wells Fargo
S&W Seed Company announced that, effective April 1, 2012, it has agreed with Wells Fargo to increase its revolving line of credit from $5 million to $7.5 million and extended the maturity date by two years, until April 1, 2014. The new line of credit will bear interest at one month LIBOR plus 2%, a rate that presently equals 2.24% per annum. The company has yet to draw any funds on either the prior or newly extended line of credit.
Matthew K. Szot, chief financial officer of S&W Seed Company, commented, “We appreciate the commitment and support that Wells Fargo has shown in making capital available to fuel the growth of our business. As previously announced, we are increasing the acreage dedicated to seed alfalfa production by nearly 100% for the coming fall 2012 harvest. Increasing the size of our bank line by 50% and extending it by two years, will give us greater flexibility to seize opportunities that we expect to emerge in the future as we execute on our business plan.”
Founded in 1980 and headquartered in the Central Valley of California, S&W Seed Company is a producer of warm climate, high-yield alfalfa seed varieties, including varieties that can thrive in poor, saline soils. S&W Seed also offers seed cleaning and processing.