FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / Press Releases / Read Press Release

Print

Agriculture Financial Services Provides $3.2MM in ABL Facilities to EarthRenew

July 29, 2021, 07:10 AM
Filed Under: Agriculture
Related: Agriculture


EarthRenew, a Canadian company focused on regenerative agriculture solutions, announced that, effective July 21st, 2021, its wholly owned subsidiary Replenish secured new senior secured asset-based credit facilities totalling $3.2 million from Agriculture Financial Services Corporation (“AFSC”). The ABL Facility will replace Replenish’s existing senior debt, and will be used to fund inventory growth and capital expenditures related to Replenish’s current production facilities.

"We are very pleased to have Replenish enter into this strategic relationship with AFSC, one of Alberta’s leading agricultural lenders," said Keith Driver, EarthRenew’s Chief Executive Officer. "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 January 1st, 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 $2,558,968 was drawn on the ABL Facility, with $1,592,291 used to repay existing senior debt. The ABL Facility is subject to compliance with financial covenants starting in 2022. EarthRenew has provided an unlimited guarantee as security for the ABL Facility.







Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.