Business
ImmuCell Announces Refinancing of its Bank Debt
PORTLAND, Maine, March 11, 2020 (GLOBE NEWSWIRE) -- ImmuCell Corporation (Nasdaq: ICCC) (“ImmuCell” or the “Company”), a growing animal health company that
About this update from Immucell Corporation
[{"type":"text","content":"PORTLAND, Maine, March 11, 2020 (GLOBE NEWSWIRE) -- ImmuCell Corporation (Nasdaq: ICCC) (“ImmuCell” or the “Company”), a growing animal health company that develops, manufactures and markets scientifically-proven and practical products that improve the health and productivity of dairy and beef cattle, today announced a complete refinancing of its bank debt.\n The Company closed on an $8.6 million debt refinancing package with Gorham Savings Bank comprised of three components. The first is a ten-year $5.1 million mortgage note bearing interest at a fixed rate of 3.50% per annum with monthly principal and interest payments due based on a twenty-five-year amortization schedule. The second component is a seven-year $3.5 million note bearing interest at a fixed rate of 3.50% per annum with monthly principal and interest payments due based on a seven-year amortization schedule. The proceeds were used to provide some additional working capital but mostly to refinance $8.3 million in outstanding bank debt and pay off a related interest rate swap termination liability of $165,000. The third component is a $1 million line of credit, which bears interest at a variable rate equal to the one-month LIBOR plus 2.15%. “This is a great opportunity for us to lower our interest rate exposure and extend our loan repayment terms,” commented Michael F. Brigham, President and CEO. “Given the extreme volatility being experienced in the financial markets right now, I believe we will be well-served with this debt financing over the long term.” The Company previously had five different loans with interest rates ranging from fixed rates of 4.38% and 6.04% to variable rates of the one-month LIBOR plus 2.25% that had been entered into during different stages of its capital investment programs, including one with a $452,000 balloon principal payment due during the third quarter of 2020. This indebtedness is secured by mortgages and security interests covering substantially all of the Company’s assets. By bank debt covenant, the Company is required to maintain $1.4 million in an escrow account until certain financial conditions are met based on the Company’s performance during 2020 or after and provided adequate collateral values relative to outstanding loan balances are achieved. In comparison, the covenants included in the repaid debt required the Company to...