Attached files
| file | filename |
|---|---|
| 8-K - FORM 8K 3.30.10 - ALICO, INC. | form8k33010.htm |
| EX-99.1 - PRESS RELEASE 4.1.10 - ALICO, INC. | exhibit991.htm |
Exhibit 99.2
March 26, 2010
Alico, Inc.
Post Office Box 338
LaBelle, Florida 33975
Attn: Patrick W. Murphy,
CFO
Re:
Covenant Reduction under Amended and Restated Loan Agreement among Alico, Inc.,
("Borrower") and Farm
Credit of Southwest Florida, ACA ("Lender") dated effective May
26, 2006, as amended on August 30, 2007, February 26, 2008, March 25, 2008,
September 3, 2008, and March 30, 2009 (collectively, the "Loan Agreement")
Dear Mr. Murphy:
Reference
is made to the Loan Agreement referenced above. Any capitalized terms used but
not defined herein shall have the meaning set forth in said Loan Agreement.
Based on the information you have furnished to us, we are advised that for the
quarter ending March 31, 2010, the parties to the Loan Agreement may be in
violation of the requirement set forth in Section 4.3(c) of the
Loan Agreement to maintain a Debt Service Coverage Ratio for such period of not
less than 1.10 to 1.00. This is to advise you that Lender hereby provides this
one time reduction of compliance with the financial covenant referenced above
for the quarter ending March 31, 2010 of not less than .85 to 1.00. This one
time reduction is limited to the aforesaid covenant for the quarter ending March
31, 2010 and may not be construed to extend to any other violations by the
parties to the Loan Agreement with said covenant for any other time period or to
any other violations by any of the parties to the Loan Agreement of any other
term or covenant of the Loan Agreement or any Loan Document.
Furthermore,
this is to advise you that no Borrower, Guarantor or any subsidiary of Borrower
shall pay or declare any distribution or dividend for the quarter ending March
31, 2010.
The
one time reduction provided herein shall in no way be construed to amend, modify
or otherwise vary the terms of the Loan Agreement or any other Loan Document,
all of which shall remain in full force and effect until maturity and
termination of the loans referenced therein. If you accept these conditions
please acknowledge such acceptance below. The one time reduction of the covenant
provided herein shall be effective upon our receipt of an acknowledgment of this
letter by the parties to such Loan Agreement.
Sincerely,
Farm Credit of
Southwest Florida, ACA
By: /s/ Greg Carlton
Its: Vice
President
The parties named
below, being all of the parties to the Loan Agreement referenced above, hereby
acknowledge and agree to the terms and conditions of the foregoing under seal on
the date set forth below.
BORROWER:
ALICO, INC. (SEAL)
By: /s/ Patrick W. Murphy
Patrick W. Murphy,
CFO
Date: 3/30/10
GUARANTORS:
BOWEN BROTHERS FRUIT, LLC (SEAL)
By: ALICO, Inc., sole member
By: /s/ Patrick W. Murphy
Patrick W. Murphy,
CFO
Date: 3/30/10
ALICO-AGRI, LTD. (SEAL)
By: Alico, Inc., General Partner
By: /s/ Patrick W. Murphy
Patrick W. Murphy,
CFO
Date: 3/30/10
ALICO LAND DEVELOPMENT, INC. (f/k/a
SADDLEBAG LAKE RESORTS, INC.) (SEAL)
By: /s/ Patrick W. Murphy
Patrick W. Murphy,
CFO
Date: 3/30/10