Farm Credit West Consent Letter to Calavo Growers, Inc. Regarding Amendments to Term Revolving Credit Agreement

Contract Categories: Business Finance › Modification Agreements
Summary

Farm Credit West has agreed to Calavo Growers, Inc.'s request to increase its borrowing limit with Bank of America from $10 million to $15 million, raise the minimum required tangible net worth to $59 million (and to $64 million after October 31, 2010), and change the minimum EBITDA covenant to a maximum funded debt to EBITDA ratio of 3.0 to 1.0. These changes modify the financial covenants in Calavo's existing term revolving credit agreement. Calavo must comply with these new requirements on a consolidated quarterly basis.

Read More Arrow
EX-10.19 2 v54809exv10w19.htm EX-10.19 exv10w19
Exhibit 10.19
     
 
  Administrative Office
 
  2929 W. Main St., Suite G. Visalia, CA 93291
 
  P.O. Box 631, Visalia, CA 93279
 
  559 ###-###-#### FAX: 559 ###-###-####
Farm Credit West
  Web: www.farmereditwest.com
September 11, 2009
Calavo Growers, Inc.
P.O. Box 751
Santa Paula, CA 93061-0751
RE: Consent to allow increase in Bank of America Debt, an increase in minimum Tangible Net Worth, and a change in the minimum EBITDA covenant
Attention: James Snyder
Farm Credit West has approved the consent request as per the “TERM REVOLVING CREDIT AGREEMENT — SECTION 16 Negative Covenants (A) Borrowings (iv).” Approved Calavo’s increased borrowing limit with Bank of America from $10,000,000, to a maximum of $15,000,000.
Farm Credit West has approved the consent request as per the “TERM REVOLVING CREDIT AGREEMENT — SECTION 17 Financial Covenants (B) Tangible Net Worth”. Approved an increase in minimum tangible net worth to $59,000,000. This minimum will increase again to $64,000,000 and will be effective on and after October 31, 2010. Calavo must maintain on a consolidated quarterly basis a minimum Tangible Net Worth equal to or greater than these minimums.
Farm Credit West has approved the consent request as per the “TERM REVOLVING CREDIT AGREEMENT — SECTION 17 Financial Covenants (C) EBITDA”. Approved a change in the minimum EBITDA from $7,500,000, to a ratio of 3.00: 1.0. Funded Debt to EBITDA shall not exceed this number and will be calculated on a consolidated quarterly basis.
Sincerely;

James K. Neeley
Sr. Vice President
     
Farm Credit West, FLCA    
Farm Credit West, PCA    
Subsidiaries of Farm Credit West, ACA   The Farm Credit System