EarthRenew, a Canadian company focused on regenerative agriculture solutions, and its wholly-owned subsidiary, Replenish, secured a senior secured asset-based credit facility totaling $3.2 million from Agriculture Financial Services. The ABL facility will replace Replenish’s existing senior debt. Replenish will use the financing to fund inventory growth and capital expenditures related to its current production facilities.
“We are very pleased to have Replenish enter into this strategic relationship with AFSC, one of Alberta’s leading agricultural lenders,” Keith Driver, CEO of EarthRenew, said. “The facility is flexible, allowing it to fit our dynamic business needs. The customized financing provided by AFSC demonstrates the strong support for agribusinesses and will provide us with significant financial flexibility to continue to execute our growth plans.”
The ABL facility contemplates a five-year term, including interest-only payments until Jan. 1, 2022. Amounts drawn on the main facility bear interest at a rate of 3.52% per annum, while the inventory loan rate is 2.875% per annum. On closing, an aggregate of $2.5 million was drawn on the ABL facility, with $1.5 million used to repay existing senior debt. The ABL facility is subject to compliance with financial covenants starting in 2022. EarthRenew provided an unlimited guarantee as security for the ABL facility.
