AgroFresh signs multicurrency credit agreement with JPMorgan

By William Gullotti

Buffalo, N.Y., March 31 – AgroFresh Solutions, Inc., in connection with the completion of its merger agreement involving Project Cloud Holdings, LLC, signed a multicurrency credit agreement with JPMorgan Chase Bank, NA as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The agreement is comprised of a $225 million term loan, a €22,961,058.05 term loan, a $25 million delayed-draw term loan and a $20 million revolver.

The term loans will mature March 31, 2029, bearing interest at either SOFR plus 650 basis points or Euribor plus 725 bps. In each case, the interest rate is subject to a floor of 1%.

Borrowings from any of the term loans will amortize in equal quarterly installments in an amount equal to 5% per annum of the principal amount, with the remaining balance payable upon maturity.

The term loans may be prepaid at the borrower’s option at any time, subject to minimum principal amount requirements. Prepayments of the term loans, as applicable, that are voluntary or made using the proceeds of refinancing or unpermitted indebtedness or a transformative event (as defined in the agreement and subject to certain conditions) are subject to a 2% premium if made before March 31, 2024. Prepayments of this kind made between March 31, 2024 and March 31, 2025 are subject to a 1% premium.

Prepayments may otherwise be made without premium or penalty.

The revolver will mature March 31, 2028.

Revolver borrowings also bear interest at SOFR plus 650 bps, with the rate likewise subject to a floor of 1%.

The revolver is not subject to amortization.

Effective at closing, the company repaid and subsequently terminated its existing agreement with Bank of Montreal as administrative agent.

AgroFresh is a Philadelphia-based provider of solutions, technologies and services to enhance the quality and extend the shelf life of fresh produce.

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