S&W Seed agrees to new $35M credit option

LONGMONT — S&W Seed Co. (Nasdaq: SANW) downsized its lines of credit, citing lower costs to that capital.

The Longmont-based agricultural seed breeder said in a press release that it had agreed to a $35 million line of credit with CIBC Bank late last month, citing lower costs for tapping that source of capital.

The company did not disclose the interest rate for the credit line. All borrowings and interest under the deal are due in December 2022.

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“We are pleased to have entered into this new revolving credit facility with CIBC, which we believe has a number of advantages over our existing facility, including the reduction in our cost of capital, improvements to our borrowing base structure and greater financial flexibility,” Matthew Szot, S&W chief financial officer, said in a statement.

According to filings with the U.S. Securities and Exchange Commission, S&W paid $5.9 million to terminate its existing $45 million credit fund with KeyBank (NYSE: KEY).

S&W primarily creates alfalfa seeds and hybrids of sunflowers, wheat and sorghum strains, along with forms of the sweetener alternative stevia. 

The company was previously based in Sacramento, California, but CEO Mark Wong said in an earnings call last November that the company had moved its U.S. headquarters and 25 employees to Longmont.