Analyst Summary
- AMVAC Chemical Corporation, a subsidiary of American Vanguard Corporation, entered into Amendment Number Eight to its Third Amended and Restated Loan and Security Agreement on March 12, 2025.
- The amendment modifies the Maximum Total Leverage Ratio for various periods in 2025, ranging from 6.25 to 5.75 before returning to 3.25 at the end of the year.
- The Minimum Fixed Charge Coverage Ratio was modified to 1.15 for the period ending March 31, 2025, and returns to 1.25 thereafter.
- Borrowing capacity under the revolving credit facility was reduced by $50 million through June 30, 2025, $40 million from July 1, 2025 through December 31, 2025, and $75 million from January 1, 2026 through the Revolver Commitment Termination Date.
- The company is restricted from repurchasing shares, paying cash dividends, or making Permitted Acquisitions without lender consent.
- Consolidated EBITDA calculation was modified to account for expenses related to discontinued operations related to the Company’s SIMPAS business and write-down of certain inventory, up to a maximum of $50 million.
- Interest rates were adjusted, with the Applicable Margin for SOFR Loans and Letter of Credit Fees set at 3.75%, the Applicable Margin for Adjusted Base Rate Loans set at 2.75%, and the Unused Line Fee Rate set at 0.35%.
- Additional reporting requirements were introduced, including 13-week cash flow forecasts and monthly financial reporting obligations.