Umami Sustainable Seafood and Kali Tuna Enter into a $10.4 Million Credit Facility
July 17 2013 - 7:09PM
Business Wire
On June 17, 2013, Umami Sustainable Seafood, Inc. (“Umami”);
Kali Tuna d.o.o. (“Kali”), a subsidiary of Umami; and MB LUBIN
d.o.o. (“Lubin”) entered into a new credit agreement (the “New
Credit Facility”), dated as of that date, with
Erste&Steiermaerkische Bank d.d. (“Erste Bank”), as
administrative agent, and the lenders party thereto.
The New Credit Facility replaces the previous credit agreement
dated as of July 25, 2012 (the “Original Credit Facility”) among
Kali, as the borrower, Umami and Lubin, as the guarantors, and
Erste Bank, as administrative agent acting on behalf of the lender,
Croatian Bank For The Reconstruction and Development (“HBOR”), that
provided for a Croatian Kuna (“HRK”) 60 million (approximately
$10.4 million) secured revolving credit facility. The Original
Credit Facility, which was structured in two tranches, expired on
February 28, 2013 and March 31, 2013, when amounts due thereunder
were repaid in full and on time.
The New Credit Facility provides for up to HRK 60 million
(approximately $10.4 million). All commitments under the New Credit
Facility will mature on April 30, 2014.
The lenders under the New Credit Facility are secured by a
pledge/lien on the majority of Kali’s and Lubin’s assets, including
a pledge of Kali’s equity holdings in Umami (7.86 million shares of
Umami common stock). Umami and Lubin are corporate guarantors under
the New Credit Facility.
On June 28, 2013, Kali (together with the above corporate
guarantors) entered into a short-term working capital loan
agreement under the New Credit Facility that provides up to
Japanese Yen (“JPY”) 860 million (approximately $8.7 million) (the
“JPY Loan Agreement”). Upon full draw-down of amounts available
under the JPY Loan Agreement, the remainder of the New Credit
Facility (i.e., approximately HRK 10 million, or $1.7 million) is
expected to be provided by HBOR as lender and Erste Bank as
administrative agent, through an HRK short-term working capital
revolving loan.
On July 8, 2013, Kali received approximately JPY 420 million
(approximately $4.25 million) under the New Credit Facility and the
JPY Loan Agreement. The JPY Loan Agreement under the New Credit
Facility provides for new pricing terms that increase the
applicable margin on the loans relative to the Original Credit
Facility. The applicable interest rate on borrowings under the JPY
Loan Agreement is the three-month JPY LIBOR plus 650 basis points.
Interest is payable monthly in arrears. Kali paid upfront fees
equal to 0.85% of the full amount available under the JPY Credit
Agreement.
The terms under which amounts outstanding under the New Credit
Facility may be accelerated did not materially change from those
under the Original Credit Facility.
“This credit facility is an important agreement for Umami and
Kali Tuna and it improves our liquidity position,” said Timothy
Fitzpatrick, Umami’s chief financial officer.
Umami Sustainable Seafood, Inc.Tim Fitzpatrick, 619-544-9177
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