$125M cash infusion will reduce Pinnacle Ag’s overall debt

LOVELAND — Pinnacle Agriculture Holdings LLC, an agricultural retail distribution business based in Loveland, said on Tuesday it has received a $125 million cash infusion from investors and creditors that will reduce the company’s overall debt.

The new capital investment will be provided by funds affiliated with Apollo Global Management LLC, certain existing creditors of Pinnacle, certain members of the Pinnacle management team and other new investors.

The company also has reached agreement with creditors to extend the due dates of a first-lien term loan and second-priority senior secured notes.

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The recapitalization plan is expected to reduce Pinnacle’s debt by approximately $200 million and its annual debt-service costs by more than $5 million. The company did not reveal the total amount of its debt.

“We have been diligently working with our financial advisers over the past few months to develop a longer-term financial plan for Pinnacle,” said Kenny Cordell, Pinnacle’s president and chief executive. “We are pleased that a substantial majority of our creditors have already committed their support. … We believe that the new capital investment, of over $125 million, demonstrates the confidence that our creditors and shareholders have in Pinnacle’s business plan and also positions Pinnacle to drive long-term value for all of the company’s key constituents, including its employees, customers and investors. … Our management team is also investing new capital of approximately $1 million alongside the other investors.”

The company operates through its Sanders, Providence Agriculture, Performance Agriculture, AgOne Application Services, OptiGro, Innvictis and Meridian Agriculture Distribution brands, serving growers across the United States.

Pinnacle’s operations include seed production and sales, agricultural chemical distribution, bulk handling of fertilizer, precision agriculture services, and general merchandise for the farming, livestock and wildlife industries.