Wells Fargo Bank extends $5 million credit line to S&W Seed Company
Five Pionts, California, USA
March 31, 2011
S&W Seed Company (NASDAQ: SANW) today announced that it has completed an agreement for a one-year, revolving line of credit with Wells Fargo Bank National Association with maximum availability of $5,000,000. The outstanding principal balance of the line of credit will bear interest at one month LIBOR plus 2%, which presently equals 2.25% per annum. The line of credit bears a standby fee on one-half percent (0.50%) per annum on the average daily unused amount of the line of credit, for a maximum of $25,000 if the line is not utilized.
"We are very pleased to announce this new revolving credit facility with what we believe is one of the country's leading and most sophisticated agricultural lenders," stated Matt Szot, Chief Financial Officer of S&W Seed. "Our strong relationship with Wells Fargo offers us greater ability to pursue strategic initiatives related to acquisitions, joint ventures, financing of inventory and other business initiatives that might present themselves in the future. This credit arrangement is also flexible, in that its terms do not require us to encumber any of our real property or put significant restraints on operating flexibility."
For more detailed information on the terms and conditions of the new credit line, please refer to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on or before Monday, April 4, 2011.
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Website: http://www.swseedco.com/ Published: March 31, 2011 |
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