- Lifecore Biomedical Inc (NASDAQ:LFCR) has entered into a broad set of agreements with its long-term customer, Alcon AG (NYSE:ALC), providing for the repayment of the company’s existing credit agreement with its current lenders.
- Under the terms of the lending and equipment sale and leaseback arrangements, Alcon has provided total commitments of $150.0 million.
- It includes a six-year senior secured term facility and a sale leaseback of certain HA fermentation equipment.
- The term facility bears interest at the rate of 10%, which is payable in kind (PIK) for the first three years, and payable 3% in cash interest and 7% PIK interest thereafter until maturity.
- Concurrently with this arrangement, the company and current lender BMO entered into an amendment to the ABL revolving credit facility, which, among other things, contains waivers for current defaults.
- In addition, the Amended and Restated Supply Agreement with Alcon extends the term through December 31, 2033.
- It increases the amount of hyaluronic acid (HA) that Lifecore is expected to supply for use in Alcon’s commercial products.
- Price Action: LFCR shares are trading higher by 60% at $8.58 on the last check Tuesday.
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