Alico, Inc. Announces Amendment to Credit Agreement Supporting Strategic Transformation

Core Viewpoint - Alico, Inc. has amended its credit agreement to better align financial covenants with its strategic transformation, which includes reducing insurance coverage requirements for the upcoming harvest season, leading to cost savings for the company [1][2][3]. Group 1: Credit Agreement Amendment - The Amendment No. 7 to the First Amended and Restated Credit Agreement became effective on March 31, 2025, and adjusts certain financial covenants to support Alico's evolving business model [2]. - The Amendment specifically reduces the level of Crop and Tree Insurance coverage required for the 2025/2026 harvest season, which is expected to result in cost savings for Alico [2]. Group 2: Business Transformation - John Kiernan, President and CEO, stated that the amendments create a more flexible financial framework while maintaining appropriate discipline, reflecting the company's ongoing business transformation [3]. - Alico Citrus, one of the nation's largest citrus producers, will wind down operations after the 2024/2025 harvest due to environmental and financial challenges, shifting focus to long-term diversified land usage and real estate development [4]. Group 3: Company Operations - Alico operates two divisions: Alico Citrus and Land Management and Other Operations, which include land leasing and related support operations [4]. - The company remains committed to Florida's agriculture industry despite the winding down of its citrus operations, emphasizing a strategy focused on diversified land usage and real estate development [4].