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- Health and Plant Protein Group (HPP) has secured a new US$8 million (around A$10.45 million) debt facility
- The company’s subsidiary MacFarms signed a revolving line of credit facility with American AgCredit
- So far, around US$3 million (about A$3.92 million) has been drawn down from the new line of credit
- The drawn funds have been used to pay off HPP’s working capital finance facility it had with Greensill Capital UK
- Shares in Health and Plant Protein Group are trading steady at 25 cents
Health and Plant Protein Group (HPP) has secured a new US$8 million (around A$10.45 million) debt facility.
Company subsidiary MacFarms signed the revolving line of credit facility with American AgCredit.
The facility was secured by a first ranking mortgage using the macadamia nut producer’s property interests in Hawaii.
HPP explained the loan will amortise at the rate of US$320,000 (roughly A$418,000) on March 1 each year until the maturity date of 2046.
The exact interest of the debt facility isn’t disclosed, however, the company confirmed it is payable quarterly in arrears.
Already, around US$3 million (about A$3.92 million) has been drawn down from the new line of credit.
Health and Plant Protein said the drawn funds have been used to pay off its working capital finance facility it had with Greensill Capital UK.
“Since late last year, we have been working on an alternative financing arrangement that would be simpler to manage and offer a lower cost of capital for the company,” Executive Director Dennis Lin said.
“We are grateful for the support of American AgCredit, who have put forward a more traditional facility that is better suited for our business moving forward and will reduce our interest margin by a material portion relative to Greensill,” he added.
“We thank Greensill for the support provided to us over the last 15 months and as they work through their challenges, we wish them and their stakeholders all the best.”
Health and Plant Protein Group’s shares are trading at 25 cents per share at 3:08 pm AEST.
