Landec Corporation Amends Credit Agreement, Appoints Brian McLaughlin Chief Financial Officer

Amendment provides covenant relief 
McLaughlin named CFO following his service as interim CFO since January 2020

SANTA CLARA, Calif., March 25, 2020 (GLOBE NEWSWIRE) -- Landec Corporation (Nasdaq: LNDC) (“Company”), a diversified health and wellness company with two operating businesses, Curation Foods, Inc. and Lifecore Biomedical, Inc., today announced an amendment to its credit facility and named Brian McLaughlin as its permanent CFO.

Amendment to Credit Agreement
On March 19, 2020, the Company entered into the Seventh Amendment to the Credit Agreement which increased the leverage ratio covenant to 5.75 to 1.00 from 5.0 to 1.0 for the fiscal third quarter ended February 23, 2020.  If the Company’s leverage ratio is in excess of 5.0 to 1.0 as measured under the terms of the credit agreement, the Company will incur a 50 basis point increase in the underlying interest rate and will incur an incremental 5 basis point increase to the commitment fee, compared to the existing pricing terms. The Company also agreed to minimum monthly EBITDA and maximum capital expenditure covenants through May 31, 2020, as well as additional reporting requirements.  Following May 31, 2020, all other covenants remain substantively unchanged compared to the existing terms of the Credit Agreement.  The Company incurred a one-time loan amendment fee equal to 15 basis points of the total borrowings under the credit facility and certain other administrative and legal costs. 

Dr. Albert Bolles, Landec’s President and CEO, stated, “We are pleased with the consistent support that our lenders have shown during this transitionary time, as we implement the components of Project SWIFT.  We have maintained a close dialogue with our lenders and they have demonstrated their confidence in Curation Foods and our turnaround plan.  Their appreciation of the positive financial improvements that are forthcoming in the second half of fiscal 2020 underpins the favorable amendment, which provided us flexibility during the third quarter while minimizing cost.”

Permanent CFO Appointment of Brian McLaughlin
The Company appointed Brian McLaughlin as Chief Financial Officer, effective March 20, 2020 following his post as interim CFO since January 2020.  Mr. McLaughlin will continue to lead Landec’s financial strategy as it executes the priorities of its value creation program, Project SWIFT.