Quarterly report [Sections 13 or 15(d)]

Long-Term Debt and Lines of Credit

v3.25.4
Long-Term Debt and Lines of Credit
 3 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-Term Debt and Lines of Credit
Note 8. Long-Term Debt and Lines of Credit
The following table summarizes long-term debt and related deferred financing costs, net of accumulated amortization, at December 31, 2025 and September 30, 2025:
(in thousands) Interest Rate December 31, 2025 September 30, 2025
Long-term debt, net of current portion:
Met Fixed-Rate Term Loans 3.85% $ 70,000  $ 70,000 
Met Fixed-Rate Term Loan II 6.21% $ 10,000  $ 10,000 
Met Citree Term Loan 5.28% 3,387  3,450 
Deferred financing fees (386) (403)
83,001  83,047 
Less current portion 250  250 
Long-term debt $ 82,751  $ 82,797 
The following table summarizes the line of credit and related deferred financing costs, net of accumulated amortization at December 31, 2025 and September 30, 2025:
(in thousands) December 31, 2025 September 30, 2025
Line of Credit:
RLOC $ 2,500  $ 2,500 
Deferred financing fees (697) (719)
Line of Credit $ 1,803  $ 1,781 
Interest costs expensed and capitalized were as follows:
(in thousands) Three Months Ended
December 31,
2025 2024
Interest expense $ 965  $ 898 
Interest capitalized 53  301 
Total $ 1,018  $ 1,199 
Debt
The Company’s credit facilities consist of fixed interest rate term loans (“Met Fixed-Rate Term Loans”) and a $95,000 revolving line of credit (“RLOC”) with Metropolitan Life Insurance Company (“Met”).
The term loans and RLOC are secured by real property consisting of approximately 40,428 gross acres of land.
The Met Fixed-Rate Term Loans and Fixed-Rate Term Loan II, are interest-only with a balloon payment at maturity on November 1, 2029 and May 1, 2034, respectively
The RLOC bears interest rate at SOFR plus 220 basis points (the "Amended SOFR Spread”), with a SOFR floor of 5.00% and a minimum balance of $2,500. The Amended SOFR Spread and SOFR floor are subject to adjustment by lender every two years beginning January 1, 2026 and every two years thereafter until maturity. The RLOC is subject to an annual commitment fee of 25 basis points on the unused portion of the line of credit and is available for funding general corporate purposes. At December 31, 2025 and September 30, 2025, $92,500 was available under the RLOC.
The variable interest rate on the Amended RLOC was 5.93% and 6.56% per annum as of December 31, 2025 and September 30, 2025, respectively.
The Company’s credit facilities contain restrictive covenants which requires the Company to maintain cash and cash equivalents in an amount equal to 1.5 multiplied by the cumulative sum of: i) the scheduled principal and interest payments due under the debt owed to Met, which may be due and payable during the immediately following twelve month period and ii) the projected interest payments due under the RLOC (the “Minimum Liquidity Requirement”). In addition, the Company must maintain Cash and cash equivalents and Current Assets less Current liabilities (“Working Capital”) in excess of the Minimum Liquidity Requirement. At December 31, 2025, the Minimum Liquidity Requirement was $5,831.
The credit agreement also includes a 50.0% Loan To Value Cap (the "LTV CAP") on the value of the term loans and RLOC capacity. At December 31, 2025, the Company was able to draw the available balance under the RLOC, while remaining under the LTV Cap.
As of December 31, 2025, the Company was in compliance with all of the financial covenants.
Credit facilities also include a Met Life term loan collateralized by 1,200 gross acres of citrus grove owned by Citree (“Met Citree Loan”). This is a $5,000 credit facility that bears interest at a fixed rate of 5.28% per annum. Principal and interest payments are made on a quarterly basis. The loan matures in February 2029.
Deferred Financing Costs
Costs incurred to obtain financing are deferred and amortized to “Interest expense” in the Condensed Consolidated Statements of Operations over the related financing period using the effective interest method. The Company records debt issuance costs as a direct reduction of the carrying value of the related debt. Financing costs related to the undrawn RLOC are included in "Other non-current assets" in the Condensed Consolidated Balance Sheets.