Benzinga | Jul 7, 2021 10:01AM EDT

Cadiz Says Completes $107.5M Refinancing Package

Today, Cadiz Inc. ((", the Company, ", NASDAQ:CDZI) is pleased to announce the closing of a new, long-term $50 million, 7% senior secured credit facility agented by B Riley Securities, Inc. (the "BRS Credit Facility"), successfully completing a $107.5 million financing package that has enabled the Company to reduce its total outstanding debt, lengthen debt maturity and provide capital resources for continued asset development activities.

The net proceeds from the BRS Credit Facility, combined with the net proceeds from its recently closed underwritten registered public offering of $57.5 million of 8.875% Series A Cumulative Perpetual Preferred Stock (the "Series A Preferred Stock"), represented by depositary shares which are expected to be begin trading on NASDAQ under the symbol "CDZIP" within 30 days, were utilized to repay in full the Company's senior secured term loan with Apollo Special Situations Fund, LP(the "Existing Credit Agreement"), fund a segregated dividend account and provide working capital.

The closing of the BRS Credit Facility concludes a series of financial transactions in Q2 2021 that also supported the Company's acquisition of the Cadiz Northern Pipeline and ongoing infrastructure development at the Company's properties.

"This important financing package has significantly reduced the Company's leverage and we believe has positioned the Company well to execute on our mission of contributing our unique assets to address California's deepening water resource challenges," said Scott Slater, Cadiz CEO and President. "We are grateful for the diligent efforts of B. Riley Securities and the other joint book runners and managers to successfully complete these significant transactions for the Company."

The BRS Credit Facility replaces the Company's outstanding debt with a reduced borrowing level of $50 million and a maturity date of July 2024. The new facility will accrue interest at 7% per annum, a reduction from the Existing Credit Agreement of 9.5% per annum.

Following the closing of second quarter financial transactions, the Company has over $25 million in cash available for general business operations plus over $10 million in a segregated dividend account for eight quarterly dividend payments on the Series A Preferred Stock. This balance is net of the $19 million payment the Company made in June to El Paso Natural Gas to complete the acquisition of the 220-mile Cadiz Northern Pipeline announced via press release on July 1st.

Additional details regarding the BRS Credit Facility, the Series A Preferred Stock and depositary shares, are provided in the July 1, 2021, Prospectus Supplement (Form 424) to the Company's shelf registration statement on Form S-3 (Registration No. 333-257159) (the "Registration Statement") initially filed with the Commission on June 17, 2021, and declared effective by the Commission on June 25, 2021 and Form 8-K filed today.

"In the third quarter, the Company will focus on continuing sustainable asset and infrastructure development at its properties including critical investment in water supply facilities that can benefit California communities," Slater added.

To learn more about the Company's mission and projects, please visit cadizinc.com.