UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 21, 2022
MISSION PRODUCE, INC.
(Exact name of Registrant as specified in its charter)
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Delaware | 001-39561 | 95-3847744 | ||||||||||||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission file number) | (IRS Employer Identification No.) | ||||||||||||
2710 Camino Del Sol, Oxnard, CA | 93030 | |||||||||||||
(Address of Principal Executive Offices) | (Zip code) | |||||||||||||
Registrant’s telephone number, including area code: (805) 981-3650 | ||||||||||||||
(Former name or former address, if changed since last report.) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.001 per share | AVO | NASDAQ Global Select Market |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | ☐ | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Item 1.01 Entry into a Material Definitive Agreement
On October 21, 2022, Mission Produce, Inc. (the “Company”) entered into a third amendment to (the "Third Amendment”) to the Credit Agreement, dated as of October 11, 2018, as amended on September 18, 2020 and April 26, 2022, by and among Mission Produce, Inc., as Borrower, certain subsidiaries of the Borrower party thereto as guarantors, Bank of America, N.A. as administrative agent, Swingline Lender and L/C Issuer, Farm Credit West, PCA as Syndication Agent, City National Bank, Citibank, N.A., and J.P. Morgan Chase Bank, N.A. as co-documentation agents, BofA Securities, Inc. and Farm Credit West, PCA as joint lead arrangers and joint bookrunners, and other lenders party thereto.
Among other things, the Third Amendment changed:
(i)the total borrowing capacity of the facility to $250 million, denominated as a $150 million revolving facility, and two senior term loans totaling $100 million, from $275 million, denominated as a $100 million revolving facility and two senior term loans totaling $175 million; the terms of the senior loans under the Third Amendment are five years and seven years, due October 2027 and October 2029, respectively;
(ii)the maximum additional borrowings permitted under the swing line facility and accordion feature to $20 million from $25 million; and
(iii)the applicable interest rate to a spread over SOFR ranging from 1.5% to 2.5%, from LIBOR ranging from 1.5% to 2.75%.
The Third Amendment requires the Company to comply with financial and other covenants, including limitations on investments, capital expenditures, dividend payments, amounts and types of liens and indebtedness, and material asset sales. The Company is also required to maintain (i) a consolidated total net leverage ratio of not more than 3.5 to 1.0 and (ii) a fixed charge coverage ratio of at least 1.25 to 1.0, each calculated on a consolidated basis for each consecutive four-quarter fiscal period.
In the ordinary course of their respective businesses, certain of the lenders under the Third Amendment or their affiliates have in the past performed, and may in the future from time to time perform, investment banking, advisory, lending and/or commercial banking or other financial services for the Company and its subsidiaries for which they received, or may receive, customary fees and reimbursement of expenses.
The foregoing description does not purport to be a complete statement of the terms of the Third Amendment and is qualified in its entirety by reference to the Third Amendment, filed as Exhibit 10.20 hereto and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Entry Sheet Arrangement of a Registrant
The information provided in Item 1.01 of this report is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MISSION PRODUCE, INC. | ||
/s/ Stephen J. Barnard | ||
Stephen J. Barnard | ||
Chief Executive Officer |
Date: October 21, 2022