LINE OF CREDIT AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

LINE OF CREDIT AND LONG-TERM DEBT

LINE OF CREDIT AND LONG-TERM DEBT

Debt consisted of the following as of December 31:

($ in thousands)	2022		2021
Notes payable	$	50,154	$	52,784
Less: line-of-credit and current maturities of long-term debt	(1,779)		(4,475)
Less: deferred loan costs	(214)		(154)
Long-term debt, less current portion	$	48,161	$	48,155

In 2014, the Company as borrower, entered into an Amended and Restated Credit Agreement, a Term Note and a Revolving Line of Credit Note, with Wells Fargo, or collectively the Credit Facility. The Credit Facility added a $70,000,000 term loan, or Term Loan, to the then existing $30,000,000 revolving line of credit, or RLC. In 2019, the Company amended the Term Note (Amended Term Note) and extended its maturity to June 2029 and amended the RLC to expand the capacity from $30,000,000 to $35,000,000 and extend the maturity to October 2024.

The interest rate per annum applicable to the Amended Term Note was LIBOR (as defined in the Term Note) plus a margin of 170 basis points. The interest rate for the Amended Term Note was fixed at 4.16% through the use of an interest rate swap agreement. The Amended Term Note required monthly amortization payments, with the outstanding principal amount due June 5, 2029. The Amended Term Note was secured by the Company’s farmland and farm assets, which include equipment, crops and crop receivables; the PEF power plant lease and lease site; and related accounts and other rights to payment and inventory. For the RLC, at the Company’s option, the interest rate on this line of credit could float at 1.50% above the Daily One Month LIBOR rate or fixed at 1.50% above LIBOR for a fixed rate term. During the term of the RLC, the Company could have borrowed at any time and partially or wholly repaid any outstanding borrowings and then re-borrowed, as necessary.

On June 30, 2022, the Company entered into a variable rate term note, or New Term Note, and a new Revolving Line of Credit

Note, or New RLC, with Bank of America, N.A, or collectively the New Credit Facility. The New Term Loan provided a

principal amount of $49,080,000 and a maturity date of June 30, 2032, which was used to pay off the existing Wells Fargo

Amended Term Note. The Company evaluated the debt exchange under ASC 470 and determined that the exchange should be treated as a debt extinguishment. The amount available of the New RLC under the New Credit Facility is $40,607,000.

The New Term Note had a $48,462,000 balance as of December 31, 2022. The interest rate per annum applicable to the New Term Loan is the daily Secured Overnight Financing Rate, or SOFR, plus a margin of 1.55 percentage points. The interest rate for the term of the New Term Note has been fixed through the use of an interest rate swap at a rate of 4.62%. The New Term Note requires monthly amortization payments pursuant to a schedule set forth in the New Term Note, with the final outstanding

principal amount due June 28, 2032. The New Credit Facility is secured by the Company's farmland and farm assets, which,

include equipment, crops and crop receivables; the PEF power plant lease and lease site; and related accounts and other rights to payment and inventory.

The New RLC had no outstanding balance as of December 31, 2022. At the Company’s option, the interest rate on this line of credit can float at a rate equal to Daily SOFR plus 1.37% or can be fixed at a rate equal to Term SOFR plus 1.37% above Term SOFR for interest periods elected by the Company. During the term of this RLC (which matures on June 30, 2027), the Company can borrow at any time and partially or wholly repay any outstanding borrowings and then re-borrow, as necessary.

The following table summarizes debt maturities, outstanding indebtedness, and respective principal maturities as of December 31,

($ in thousands)	Stated Rate	Effective Rate	Maturity	2023		2024		2025		2026		2027		Thereafter		Total
New Term Loan1	S+1.55%	4.62%	6/28/2032	$	1,513	$	1,589	$	1,669	$	1,753	$	1,840	$	40,098	$	48,462
$40 million New RLOC	See below2	See below2	6/30/2027	—		—		—		—		—		—		—
Promissory note	4.25%	4.25%	9/1/2028	265		277		289		302		315		244		1,692
Total long-term debt				$	1,778	$	1,866	$	1,958	$	2,055	$	2,155	$	40,342	$	50,154
1The interest on the New Term Loan is fixed by an interest rate swap agreement. Please see Footnote 10 for further discussion.
2At the Company’s option, the interest rate on this line of credit can float at 1.37% over a selected SOFR rate or can be fixed at 1.37% above SOFR for a fixed rate term.