Seneca Foods (NASDAQ: SENEA) Enters Into a New Loan Agreement

Seneca Foods Corporation, a leading provider of packaged fruits and vegetables, recently announced the signing of a Loan and Security Agreement on December 23, 2024. The agreement involves Seneca Foods Corporation and its subsidiaries, Seneca Snack Company, and Green Valley Foods, LLC, collectively referred to as the Borrowers. This agreement also includes Marion Foods, Inc., Portland Food Products Company, and Gray & Company, identified as the Guarantors along with the Borrowers collectively known as the Company.

The Loan and Security Agreement establish a senior revolving credit facility of up to $450 million, adjusted seasonally to a maximum of $400 million, known as the 2024 Credit Facility. This Facility replaces the Prior Loan Agreement originally dated March 24, 2021, and includes various financial institutions, with Wells Fargo Bank, National Association acting as the Agent.

Among its various purposes, the borrowings under this agreement can be utilized for existing debt payments, covering fees and expenses related to the 2024 Credit Facility, obligations per the Agreement terms, permitted acquisitions, and other lawful corporate activities, including capital expenditures and distributions.

The availability under this Facility is primarily based on eligible accounts receivable and inventory adjusted for reserves and outstanding loans. Additionally, the Company will pay a commitment fee based on the unused portion of the Credit Facility.

The Loan Agreement also includes customary affirmative and negative covenants to limit the Company’s actions, such as incurring additional debt, paying dividends, making investments, and engaging in certain transactions with affiliates. Furthermore, certain financial covenants must be met by the Company, particularly related to a minimum fixed charge coverage ratio under specific conditions.

In case of any default events defined in the Agreement, obligations under the Loan Agreement may be deemed due and payable. The 2024 Credit Facility matures on December 24, 2029, and the borrowings are secured by a substantial portion of the Company’s non-realty assets, with full and unconditional guarantees provided by the Guarantors.

More detailed information about the Loan Agreement can be found in the official filing with the Securities and Exchange Commission. The Company terminated its Prior Loan Agreement upon the completion of this new agreement, without incurring any early penalties.

This new development positions Seneca Foods Corporation with added financial flexibility and resources to support its ongoing operations and strategic initiatives moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Seneca Foods’s 8K filing here.

Seneca Foods Company Profile

Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ.