Quarterly report [Sections 13 or 15(d)]

Long-Term Debt and Lines of Credit

v3.26.1
Long-Term Debt and Lines of Credit
 9 Months Ended
Jun. 30, 2026
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 June 30, 2026 and September 30, 2025:
(in thousands) Interest Rate June 30, 2026 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% 3,263  3,450 
Deferred financing fees (345) (403)
82,918  83,047 
Less current portion 250  250 
Long-term debt $ 82,668  $ 82,797 
The following table summarizes the line of credit and related deferred financing costs, net of accumulated amortization at June 30, 2026 and September 30, 2025:
(in thousands) June 30, 2026 September 30, 2025
Line of Credit:
RLOC $ 2,500  $ 2,500 
Deferred financing fees (655) (719)
Line of Credit $ 1,845  $ 1,781 
Interest costs expensed and capitalized were as follows:
(in thousands) Three Months Ended
June 30,		 Nine Months Ended
June 30,
2026 2025 2026 2025
Interest expense $ 951  $ 907  $ 2,875  $ 2,964 
Interest capitalized 59  37  166  365 
Total $ 1,010  $ 944  $ 3,041  $ 3,329 
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 40,258 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 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 June 30, 2026 and September 30, 2025, $92,500 was available under the RLOC.
The variable interest rate on the Amended RLOC was 5.86% and 6.56% per annum as of June 30, 2026 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 June 30, 2026, the Minimum Liquidity Requirement was $5,818.
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 June 30, 2026, the Company was able to draw the available balance under the RLOC, while remaining under the LTV Cap.
On May 13, 2026, the Company entered into the Ninth Amendment to First Amended and Restated Credit Agreement (the “Amended Credit Agreement”) which removed the requirement to maintain crop and tree insurance on the Company’s citrus trees and Valencia oranges, as well as other crop maintenance requirements.
As of June 30, 2026, 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. On July 24, 2026 the Company entered into the Second Amendment to Loan Agreement (the “Second Amendment”) which removed the requirement to provide financial information for Citree on a stand-alone basis, as well as the requirement to maintain crop and tree insurance and certain other crop maintenance requirements.
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.