Lavoro Announces a New R$420 Million 4-Year Secured Credit Facility

SÃO PAULO, Brazil, Dec. 27, 2023 (GLOBE NEWSWIRE) -- Lavoro Limited (Nasdaq: LVRO), the first U.S.-listed pure-play agricultural inputs retailer in Latin America, today announced the establishment of a new R$420 million (equivalent to approximately $86 million USD based on current exchange rates) secured credit facility with a 4-year term (the “Credit Facility”).

This strategic financial move involves the issuance of Agribusiness Receivables Certificates (“CRA”), a type of fixed-income financial instrument specific to Brazil’s agribusiness sector and governed in accordance with Brazilian securities laws. Lavoro Agro Holdings S.A., a Lavoro Limited subsidiary in Brazil, is the issuer of the CRAs as part of the Credit Facility.

The proceeds of this new facility are intended to retire existing short-term borrowings, providing Lavoro with more sustainable and longer-term financing options for working capital needs and other growth initiatives.

Commenting on the financing, Ruy Cunha, CEO of Lavoro, stated: “The successful completion of this financing under favorable terms marks a significant milestone in our ongoing efforts to enhance our capital structure. With this new facility, we are extending our debt maturity profile, reducing our cost of debt, and lessening our dependence on cumbersome short-term working capital loans. All told, this move is a valuable step in supporting our long-term growth objectives.”

The Credit Facility is split in two separate series (“Series”) maturing in December 2027. The terms of the Series I, totaling R$68 million, is based on the Central Bank of Brazil’s benchmark rate (“CDI”), bearing an interest rate of CDI plus 3% per annum. The terms of the Series II, totaling R$352 million, bears an interest rate of 14.2% per annum.

The issuance of the Credit Facility was carried out in collaboration with EcoAgro Group, a firm specialized in the structuring of CRAs. UBS BB served as the lead coordinator for this transaction, with Alfa and XP Investimentos acting as coordinators in the syndicate.

About Lavoro

Lavoro Limited is Brazil's largest agricultural inputs retailer and a leading producer of agriculture biological products. Lavoro's shares and warrants are listed on the Nasdaq stock exchange under the tickers "LVRO" and "LVROW." Through its comprehensive portfolio of products and services, the company empowers small and medium-size farmers to adopt the latest emerging agricultural technologies and enhance their productivity. Since its founding in 2017, Lavoro has broadened its reach across Latin America, serving 72,000 customers in Brazil, Colombia, and Uruguay, via its team of over 1,000 technical sales representatives (RTVs), its network of over 210 retail locations, and its digital marketplace and solutions. Lavoro's RTVs are local trusted advisors to farmers, regularly meeting them to provide agronomic recommendations throughout the crop cycle to drive optimized outcomes. Learn more about Lavoro at ir.lavoroagro.com.