Local Bounti, a U.S. indoor agriculture company combining aspects of vertical and greenhouse growing technologies, amended its existing credit facility with Cargill Financial Services.
“The amendment we announced today provides us added flexibility to meet our near-term capital needs associated with the buildout of our facilities,” Kathleen Valiasek, CFO of Local Bounti, said. “This represents the first of several thoughtful steps we expect to take to ensure that we have access to capital to support our growth strategies and keep our current development on track while we scale up our enterprise, including through potential sale-leaseback transactions or similar strategies. We look forward to sharing additional perspectives on our full fiscal 2022 performance and our 2023 outlook during our upcoming call.”
On March 13, 2023, the company, along with certain subsidiaries of the company, entered into a fifth amendment to credit agreements with Cargill to further amend the company’s existing credit facility agreements. The fifth amendment reduces the amount of cash required to be held in the debt service reserve account for the credit agreements by approximately $11 million until April 2, 2024, at which time the amount of cash required to be held in the debt service reserve account will be an amount equal to the sum of interest and principal payments that would be required under the credit agreements for two calendar quarters, allows for the payment in kind of the quarterly interest payment due and payable for the quarter ending March 31, 2023, allows for the payment in kind of the unused commitment fee payable for the quarter ending March 31, 2023 and reduces the minimum liquidity covenant in each of the credit agreements from $11 million to $1 million. The aggregate amount of outstanding loans and undrawn commitments under the credit agreements remains at $170 million (plus interest paid in kind).
