Pinnacle Agriculture Agrees To Credit Agreement Amendment

Pinnacle Operating Corp. has entered into an amendment (the “Amendment”) to its First Lien Credit Agreement that will provide for, among other things, a three-year extension of maturity on the Extending Term Loans to November 2021, a 3.5% increase in the interest rate on the Extending Term Loans and certain modifications to covenants and other provisions in the First Lien Credit Agreement that are intended to benefit the lenders.

The Amendment was agreed to in connection with a financial recapitalization plan that will reduce Pinnacle’s overall debt, reduce cash interest costs, increase the Pinnacle’s liquidity and strengthen its overall capital structure (the “Recapitalization”). The Recapitalization is expected to reduce Pinnacle’s consolidated debt by approximately $200 million, reduce Pinnacle’s annual debt service costs by over $5 million and result in a capital infusion of more than $125 million into Pinnacle Agriculture Enterprises, LLC. The new capital investment will be provided by funds affiliated with Apollo Global Management, LLC (“Apollo”), certain existing creditors of Pinnacle, certain members of the Pinnacle management team, and other new investors. The agreement to the Amendment by lenders holding over 90% of the Loans satisfies one of the conditions precedent to the Amendment’s effectiveness. The Amendment is also conditioned on, among other things, consummation of the Recapitalization, the agreement of holders of at least 90% of Pinnacle’s 9.00% Second Lien Senior Secured Notes due 2020 (the “Second Lien Notes”) to exchange their notes for new secured notes maturing May 15, 2023 and preferred stock, and an extension of 90% of the commitments under Pinnacle’s ABL facility to May 15, 2020. The Recapitalization and Amendment are expected to close concurrently on or before March 15, 2017.

The Recapitalization also currently has the support of holders of approximately 80% of the outstanding principal amount of Second Lien Notes pursuant to a Recapitalization Support Agreement that, subject to the terms and conditions set forth therein, provides for new investment commitments of more than $125 million, backstopped by investment funds affiliated with Apollo, certain existing creditors of Pinnacle, as well as certain members of the Pinnacle management team. After the Recapitalization, Apollo will remain the majority shareholder of Pinnacle.

Pinnacle expects to announce additional support for the Recapitalization in the coming days.

Leave a Reply

CropLife 100 Stories

CHS
CropLife 100CHS Acquires Western Co-op Transport Association
March 16, 2017
CHS Inc., North America’s leading farmer-owned cooperative and a global energy, grains and foods company, has purchased Western Co-op Transport Read More
Storage Tank The Andersons
CropLife 100The Andersons To Sell Farm Center Locations In Florida
March 8, 2017
The Andersons, Inc. has signed an agreement to sell its farm center locations in Florida to Wedgworth’s Inc., of Belle Read More
Wilbur-Ellis Miller, SD
CropLife 100Wilbur-Ellis Acquires Minnesota Ag Retailer
March 7, 2017
Wilbur-Ellis Agribusiness, a recognized leader in precision agriculture technology and the distribution and marketing of plant protection, seed and nutritional Read More
CropLife 100The Grower Acreage Consolidation Question
March 3, 2017
For the past few years, one of the consistent concerns among ag retailers taking part in the annual CropLife 100 Read More
Trending Articles
AdjuvantsA New Weed-Control Era Begins: But First, One Last Obstacle
March 4, 2017
There is trepidation, there is reluctance, and there is excitement. Ag retailers feel it all about the new dicamba and Read More
LIFT Academy video screenshot
Crop InputsLIFT Agriculture Academy: A Q&A With West Central Distribution’s Dean Hendrickson
March 1, 2017
West Central Distribution recently launched its LIFT Agriculture Academy, a new, premiere training and professional development resource for West Central’s ag Read More
Farmer and aptop
Matt Hopkins10 Warning Signs Your Website Is Grossly Outdated
February 8, 2017
Your Website is often a visitor’s first impression of your ag retail business. A positive first impression can set the Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Latest News
Eric Jenks, Wilbur-Ellis
Crop InputsWilbur-Ellis Launches ADVANTIGRO Plant Growth Regulator…
March 27, 2017
Wilbur-Ellis Agribusiness, a recognized leader in the marketing and distribution of crop protection, seed and nutritional products, as well as Read More
Yara West Sacramento Ribbon Cutting
Crop InputsYara West Sacramento Is Newest Addition
March 27, 2017
Yara’s West Sacramento Terminal was officially welcomed March 21 as the newest Yara North America facility in the U.S. While continually Read More
UncategorizedPrecision Ag, Iowa Water, and GM Corn Updates
March 24, 2017
Editors Paul Schrimpf and Eric Sfiligoj look at the state of precision agriculture, the dismissal of the Des Moines Water Read More
Pam Marrone
Crop InputsMarrone Bio Innovations Enters Biostimulants Market Wit…
March 23, 2017
Marrone Bio Innovations, Inc. is expanding beyond biopesticides and crop protection and into the biostimulant market by commercially launching Haven Read More
Nutrients for Life Foundation Teacher
FertilizerNutrients For Life Foundation Celebrates 10 Years Teach…
March 23, 2017
Those in agriculture know fertilizer is a vital ingredient to grow strong, productive crops. In fact, fertilizer is responsible for Read More
ManagementThink You Know Water? Take WinField United’s R…
March 22, 2017
Water is among our most precious resources, and arguably the hardest working, with just one percent available for human use, Read More
Corn Field
LegislationTFI Hopes Court Dismissal Is ‘Final Chapter’…
March 20, 2017
The Fertilizer Institute (TFI) released the following statement from President, Chris Jahn on the March 17, 2017, federal court dismissal Read More
Wheat Growers
Industry NewsWheat Growers CEO Dale Locken To Retire
March 20, 2017
CEO Dale Locken has announced that he plans to retire from Wheat Growers. Locken has served almost 15 years as Read More
Bayer Monsanto
Eric SfiligojBayer-Monsanto: Life, LibertyLink, And The Pursuit Of R…
March 20, 2017
As the calendar officially turns to spring, life is in full renewal mode. Flowers are blooming, birds are singing, and Read More
Corn Field
Crop InputsUltra Yield Micronutrients Acquires Kronos Micronutrien…
March 16, 2017
Ultra Yield Micronutrients, Inc. ”Ultra”, an affiliate of Cameron Chemicals, Inc., is pleased to announce that it has acquired the Read More
ManagementSnowstorms, Asset Sales, and Soybeans Prices
March 16, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss the weather, precision ag, crop protection company mergers, and commodity prices in this Read More
Soybean Field
Seed/BiotechBayer Invests $8.1 million In Soybean Advancement In Th…
March 16, 2017
Growers in Illinois and across the Midwest now have the added benefit of a state-of-the-art soybean research facility, increasing accessibility Read More
CHS
CropLife 100CHS Acquires Western Co-op Transport Association
March 16, 2017
CHS Inc., North America’s leading farmer-owned cooperative and a global energy, grains and foods company, has purchased Western Co-op Transport Read More
Young corn plants in soil
HerbicidesBest Management Practices To Control PPO-Resistant Weed…
March 14, 2017
Weeds resistant to the class of herbicides called protoporphyrinogen oxidase (PPO) inhibitors are spreading at a faster rate than weed Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Eric SfiligojFungicide Resistance On The Horizon
March 13, 2017
For many years now, the agricultural market has struggled to keep ahead of an ever-growing number of herbicide-resistant weeds. According Read More
Management2017 Commodity Classic Review
March 10, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss what happened at the recent Commodity Classic in San Antonio. Read More
Farmer using AgriSync
ManagementMajor AgriSync Update Aims To Extend Ag Experts’ Power …
March 10, 2017
AgriSync announced a major update to its leading collaboration and service management tool for professional ag advisors and their farmer Read More
Agrible Pocket Spray Smart App
EquipmentNew Agrible Pocket Spray Smart App Alleviates Spraying …
March 10, 2017
There’s a new app to help farmers decide when to spray their fields. Pocket Spray Smart is a free iOS Read More