LIFECORE BIOMEDICAL INC DE
For the period ended Aug 25, 2024. Filed Oct 4, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 25, 2024 · Filed Oct 4, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Debt
- Debt
Long-term debt, net consists of the following:
| August 25, 2024 | May 26, 2024 | |
|---|---|---|
| Term loan credit facility, related party | $161,245 | $157,313 |
| Equipment financing, related party | 6,957 | 7,150 |
| Total principal amount of long-term debt | 168,202 | 164,463 |
| Less: unamortized debt discount | (479) | (504) |
| Less: debt discount, related party | (61,405) | (62,367) |
| Total long-term debt, net of discounts | 106,318 | 101,592 |
| Less: current portion of long-term debt, net, related party | (773) | (773) |
| Long-term debt, net | $105,545 | $100,819 |
| Revolving credit facility | $21,605 | $19,691 |
The future minimum principal payments under the Company’s term loan credit facility and equipment financing liability for each year presented are as follows:
| Remainder of Fiscal year 2025 | $580 |
|---|---|
| Fiscal year 2026 | 773 |
| Fiscal year 2027 | 773 |
| Fiscal year 2028 | 773 |
| Fiscal year 2029 | 162,018 |
| Fiscal year 2030 | 773 |
| Thereafter | 2,512 |
| Total | $168,202 |
Term Loan Credit Facility
On May 22, 2023, the Company and Alcon (the “Borrowers”) entered into a Credit and Guaranty Agreement (the “Term Loan Credit Facility”). The Term Loan Credit Facility refinanced in full all obligations of the Company and their subsidiaries under its prior term loan credit facility. Upon entry into the Term Loan Credit Facility, the prior term loan credit facility was terminated and all noncompliance with debt covenants were thereby cured.
The Term Loan Credit Facility provided for up to $142,270 in term loans, excluding PIK interest added to the outstanding balance. The obligations under the Term Loan Credit Facility mature on May 22, 2029, and is secured by the same collateral that secures the Revolving Credit Facility (as defined below).
As of August 25, 2024 and May 26, 2024, the Company’s effective annual interest rate under the Term Loan Credit Facility was 22.5% for both periods. The annual stated rate is 10.0%.
Equipment Financing
On May 22, 2023, the Company entered into an equipment financing agreement with Alcon, totaling $7,730. The agreement calls for 40 quarterly principal payments of $193, plus 6% interest.
Revolving Credit Facility
On May 22, 2023, the Borrowers and certain of the Company’s other subsidiaries, as guarantors, entered into a Limited Waiver, Consent and Fifth Amendment to the credit agreement with BMO, as lender (the “Revolving Credit Facility”).
As of August 25, 2024 and May 26, 2024, the Company’s effective annual interest rate under the Revolving Credit Facility was linked to the Secured Overnight Financing Rate (SOFR), and was 8.35% for both periods.
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Financial Covenants Compliance Status and Borrowing Capacity
As of August 25, 2024, the Company was in compliance with all financial covenants under the Term Loan Credit Facility and Revolving Credit Facility.
As of August 25, 2024, the Company had approximately $4,500 available for borrowing under our Revolving Credit Facility and the Term Loan Credit Facility was fully drawn.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.