Business
Cadiz Completes $107.5M Refinancing Package
New Credit Facility and Preferred Stock Replace Existing Debt and Provide Working Capital for ongoing Asset Development. LOS ANGELES, July 7, 2021
About this update from Cadiz, Inc.
[{"type":"text","content":"New Credit Facility and Preferred Stock Replace Existing Debt and Provide Working Capital for ongoing Asset Development.\n\n\nLOS ANGELES, July 7, 2021 /PRNewswire/ -- Today, Cadiz Inc. (\"the Company,\" NASDAQ: CDZI) is pleased to announce the closing of a new, long-term $50 million, 7% senior secured credit facility agented by B Riley Securities, Inc. (the \"BRS Credit Facility\"), successfully completing a $107.5 million financing package that has enabled the Company to reduce its total outstanding debt, lengthen debt maturity and provide capital resources for continued asset development activities.\n\n \n \n \n \n \n \n\n \nThe net proceeds from the BRS Credit Facility, combined with the net proceeds from its recently closed underwritten registered public offering of $57.5 million of 8.875% Series A Cumulative Perpetual Preferred Stock (the \"Series A Preferred Stock\"), represented by depositary shares which are expected to be begin trading on NASDAQ under the symbol \"CDZIP\" within 30 days, were utilized to repay in full the Company's senior secured term loan with Apollo Special Situations Fund, LP(the \"Existing Credit Agreement\"), fund a segregated dividend account and provide working capital. \nThe closing of the BRS Credit Facility concludes a series of financial transactions in Q2 2021 that also supported the Company's acquisition of the Cadiz Northern Pipeline and ongoing infrastructure development at the Company's properties. \n\"This important financing package has significantly reduced the Company's leverage and we believe has positioned the Company well to execute on our mission of contributing our unique assets to address California's deepening water resource challenges,\" said Scott Slater, Cadiz CEO and President. \"We are grateful for the diligent efforts of B. Riley Securities and the other joint book runners and managers to successfully complete these significant transactions for the Company.\"\nThe BRS Credit Facility replaces the Company's outstanding debt with a reduced borrowing level of $50 million and a maturity date of July 2024. The new facility will accrue interest at 7% per annum, a reduction from the Existing Credit Agreement of 9.5% per annum. \nFollowing the closing of second quarter financial transactions, the Company has over $25 million in cash available for general business operations plu...