where do they get 15m to invest in this JV?
this is from the last filing. Their credit lines look filled in great part. numbers as shown are not audited
VILLAGE FARMS INTERNATIONAL, INC. Notes to Condensed Consolidated Interim Financial Statements for the Three and Nine Months Ended September 30, 2018 and 2017 (In thousands of United States dollars, except per share amounts and unless otherwise noted) (Unaudited)
Credit Facilities
The Company has a Term Loan financing agreement with a Canadian creditor (“FCC Loan”). The non-revolving variable rate term loan has a maturity date of May 1, 2021 and a balance of $35,155 as at September 30, 2018. The outstanding balance is repayable by way of monthly installments of principal and interest based on an amortization period of 15 years, with the balance and any accrued interest to be paid in full on May 1, 2021. As at September 30, 2018, borrowings under the FCC Loan agreement are subject to an interest rate of 6.848% (December 31, 2017 - 5.885%) which is determined based on the Company’s Debt to EBITDA ratio and the applicable LIBOR rate.
The Company’s subsidiary VFCE has a loan agreement with a Canadian Chartered Bank that includes a non-revolving fixed rate loan of CA$3.0 million with a maturity date of June 2023 and fixed interest rate of 4.98%. As at September 30, 2018, the balance was US$1,597 (December 31, 2017 - US$1,658). The loan agreement also includes an uncommitted, non-revolving credit facility for up to CA$300 to cover Letters of Guarantee issued by the bank on behalf of the Company, with a maximum term of 365 days, renewable annually. The loan agreement also includes an uncommitted credit facility for up to CA$700 to support financing of certain capital expenditures. The Company received an initial advance of CA$250 in October 2017. Each advance is to be repaid on a five-year, straight-line amortization of principal, repaid in monthly installments of principal plus interest at an interest rate of CA$ prime rate plus 200 basis points. As at September 30, 2018, the balance was US$158 (December 31, 2017 - $192) .
The Company has a line of credit agreement with a Canadian Chartered Bank ( “Operating Loan”). The revolving Operating Loan has a line of credit up to CA$13,000 and variable interest rates with a maturity date on May 31, 2021, and is subject to margin requirements stipulated by the bank. As at September 30, 2018, US$7,000 was drawn on this facility (December 31, 2017 - $nil), which is available to a maximum of CA$13,000, less outstanding letters of credit totaling US$261 and CA$38.
The Company’s borrowings (“Credit Facilities”) are subject to certain positive and negative covenants. As at September 30, 2018 and December 31, 2017, the Company was in compliance with all covenants on its Credit Facilities.
Accrued interest payable on the credit facilities and loans as at September 30, 2018 was $183 (December 31, 2017 - $193) and these amounts are included in accrued liabilities in the interim statement of financial position.
