American Vanguard Corporation (NYSE:AVD) today announced that its wholly owned subsidiary, Amvac Chemical Corporation, as borrower, and affiliates (including American Vanguard), as borrowers/guarantors, have entered into an amended and restated credit facility which will serve to support the global growth of its businesses. The lending group for the new facility is led by Bank of the West, and includes BMO Harris Bank, N.A., Wells Fargo Bank, N.A., Union Bank, N.A., Agstar Financial Services, PCA, and Greenstone Farm Credit Services, ACA, FLCA. The new facility has a five-year term and consists of both a $200 million revolving credit line and a $100 million accordion feature. This replaces the Company’s previous credit facility which initially consisted of term commitments of $62 million, a revolving line of credit of $75 million and an accordion feature of $50 million. Further, among other things, the new facility includes $50 million in borrowing capacity to the Company’s Dutch subsidiaries and permits the repurchase of American Vanguard common stock in amounts not to exceed $20 million per year or $50 million in the aggregate over the five-year term. The new facility also includes more flexibility regarding capital spending, greater capacity to make strategic investments, simplification in reporting requirements and lower overall borrowing rates.
Eric Wintemute, Chairman and CEO of American Vanguard, stated, “We are pleased to announce this improved and expanded bank credit facility. We especially appreciate Bank of the West and the entire lending group, who have worked diligently with the Company to put together this new agreement. Our relationship with our senior lenders goes back many years. They have supported us through many business cycles, and this new deal is a testament to our long-standing, close-working relationship. The new facility gives us greater flexibility to pursue the strategic direction that we have charted for the next five years. Further, it will facilitate the growth of our crop protection and pest control businesses by allowing us to acquire additional products, develop new technologies, to support our operations and to further expand internationally.”