AgroFresh Solutions closed its comprehensive refinancing, which consists of a $150 million convertible preferred equity investment by an affiliate of Paine Schwartz Partners (PSP) and an amendment and extension of the company’s senior secured credit facilities.
BMO Capital Markets acted as sole financial advisor to AgroFresh and left-lead bookrunner on the amendment and extension of the facilities. Deutsche Bank and ING acted as joint lead arrangers and joint bookrunners.
AgroFresh entered into a revised credit agreement whereby the company’s term loan maturity was extended to Dec. 31, 2024. With the proceeds of the PSP convertible preferred equity investment, the principal outstanding on AgroFresh’s term loan was reduced to $275 million, resulting in a decline in the company’s net debt-to-adjusted EBITDA ratio from approximately 5.8x to 3.9x on a pro-forma basis for the 12 months ended March 31, 2020. In addition, the company’s revolving credit facility was doubled in size from $12.5 million to $25 million, with its maturity extended to June 30, 2024. Borrowings under the amended term loan will bear interest at the rate of LIBOR plus 6.25% with a 1% LIBOR floor.
“We are pleased to close on this comprehensive refinancing and are grateful for the support from both existing and new lenders during this process,” Graham Miao, CFO of AgroFresh, said. “The transaction accomplishes several key goals for the business, including the significant, immediate deleveraging of our balance sheet and an extension of our maturities. Further, the new optimized capital structure allows us the flexibility to more aggressively address our diversification initiatives and generate growth with the support of our new strategic equity investor Paine Schwartz.”
Greenberg Traurig acted as legal advisor to AgroFresh. Evercore and Kirkland & Ellis were the financial and legal advisors to Paine Schwartz, respectively. White & Case acted as the lenders’ counsel.
AgroFresh is a provider of technology and services aimed to enhance the quality and extend the shelf life of fresh produce.
Paine Schwartz Partners is a private equity firm focused exclusively on investment opportunities in the global food and agribusiness sectors.