Arcadia Biosciences, Inc., announced the closing of a debt facility with Silicon Valley Bank. The new debt facility includes a $25 million senior secured term loan, the proceeds from which were used to prepay amounts outstanding under existing loan agreements with affiliates of Tennenbaum Capital Partners, LLC and Mahyco International Pte. Ltd. With this refinancing, all outstanding Arcadia debt is consolidated into a single debt instrument with a more favorable interest rate, reduced payment amounts and a significantly reduced cost of capital.
‚ÄúThis refinancing prudently consolidates our debt into a single lower-cost instrument, significantly reducing our periodic and overall costs,‚Äù said Eric Rey, president and CEO of Arcadia. ‚ÄúAs evidenced by the numerous technical and business developments we‚Äôve announced over the past several months in soybeans, rice, wheat, and most recently corn, we continue to deploy capital in a targeted and efficient manner to augment the major investments being made by our licensees and collaborators.‚Äù
‚ÄúWe‚Äôre excited to partner with Arcadia Biosciences as it continues to develop and commercialize plant traits that will increase yields in some of the most important global crops,‚Äù said Jonathan Norris, managing director of life science for Silicon Valley Bank. ‚ÄúOur life science team is dedicated to supporting companies like Arcadia and the broader life science sectors as these companies make incredible advancements for both people and the planet.‚Äù