LIFECORE BIOMEDICAL INC DE

10. Long-term Debt

Long-term debt, net consists of the following:

The future minimum principal payments under the Company’s term loan credit facility and equipment financing liability for each year presented are as follows:

Term Loan Credit Facility

On May 22, 2023, the Company, Curation Foods, and Lifecore Biomedical Operating Company, Inc. (the “Borrowers”), certain of the Company’s other subsidiaries, as guarantors, and Alcon Research, LLC (“Alcon”), as administrative agent, collateral agent and lender, 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 November 24, 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%.

On November 26, 2024, the Company entered into certain amendments to the Term Loan Credit Facility. Refer to Note 17 - Subsequent Events for additional information.

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.

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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 November 24, 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 approximately 8% for both periods.

On November 26, 2024, the Company entered into certain amendments to the Revolving Credit Facility. Refer to Note 17 - Subsequent Events for additional information.

Financial Covenants Compliance Status and Borrowing Capacity

As of November 24, 2024, the Company was in compliance with all financial covenants under the Term Loan Credit Facility and Revolving Credit Facility.

As of November 24, 2024, the Company had approximately $20,900 available for borrowing under our Revolving Credit Facility and the Term Loan Credit Facility was fully drawn.