New Credit Facilities to Address Working Capital Required to Support Growing Sales
DAVIS, Calif., Jan. 09, 2020 (GLOBE NEWSWIRE) — Marrone Bio (MBII) (MBI), an international leader in sustainable bioprotection and plant health solutions, today announced a $13.0 million expansion of its existing accounts-receivable credit facility which now totals $20.0 million, as well as the addition of a $3.0 million inventory-backed credit facility to support the Company as it continues to expand its customer base.
Pursuant to the terms of the agreement with LSQ Funding Group (“LSQ”), LSQ may elect to purchase up to $20.0 million of eligible customer invoices from the Company, a significant increase from the $7.0 million limit established in 2017. In addition, the Company established a new $3.0 million inventory-backed credit facility with LSQ.
“Our partnership with LSQ has given us excellent cost-effective financial vehicles by which we can improve our liquidity and working capital to accommodate our rapid growth,” said Jim Boyd, President and Chief Financial Officer of Marrone Bio Innovations. “I expect these facilities to help address the seasonal demand and varying sales cycles across the various crops and customers we serve. We look forward to continued success in 2020, driving long-term value creation for our shareholders.”
“We are pleased to renew our strong working relationship with Marrone Bio Innovations, which has been an excellent client in our portfolio,” said Dan Ambrico, President and CEO at LSQ Funding Group. “The company has utilized our products to enhance its ongoing business success, and the substantial dollar increase reflected in this year’s amendment, as well as the addition of a new inventory-backed credit facility, represents our continued confidence in the growth of their business. We look forward to our continued partnership with Marrone Bio Innovations in the future.”