Street Calls of the Week
FORT MYERS - Alico, Inc. (NASDAQ:ALCO), a $256.58 million market cap agribusiness currently trading near its 52-week high of $35.01, announced Wednesday it has amended its credit agreement with MetLife Investment Management, LLC, securing $10 million in additional fixed rate borrowings effective September 29, 2025. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 9.37.
The Florida-based agribusiness and land management company used the proceeds to retire all existing indebtedness with Prudential Mortgage Capital Company, LLC. The refinancing eliminates $1.16 million in annual mandatory principal payments that were required under the Prudential debt arrangement. InvestingPro data shows the company operates with a moderate debt level, with a debt-to-equity ratio of 0.76.
The amendment extends the maturity of these borrowings to May 1, 2034, under the MetLife agreement.
"This refinancing transaction further strengthens our balance sheet and enhances our financial flexibility," said John Kiernan, President and Chief Executive Officer of Alico, in a press release statement.
Alico operates as a diversified land company with approximately 51,300 acres across eight Florida counties. Following what the company describes as a strategic transformation in 2025, Alico has focused on strategic land development opportunities and diversified agricultural operations.
The company stated that the completion of this financing, combined with its existing revolving credit facility with MetLife, positions Alico with a capital structure to support its operations and strategic objectives.
Alico has been in operation for over 125 years, according to the company’s announcement. The company has maintained dividend payments for 21 consecutive years, though InvestingPro analysis indicates the stock is currently trading above its Fair Value. Discover more insights and 8 additional ProTips with an InvestingPro subscription, including detailed analysis in the comprehensive Pro Research Report.
In other recent news, Alico Inc. reported its third-quarter earnings for fiscal year 2025, showing a significant decline in both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of -$2.39, which fell short of the expected -$0.35, resulting in a surprise of 582.86%. Revenue also missed expectations, coming in at $8.39 million against the forecasted $16.9 million, marking a 50.36% shortfall. In addition to these earnings results, Freedom Capital Markets initiated coverage on Alico with a Buy rating and set a price target of $44.00, suggesting a potential upside of 31%. These recent developments come as Alico is in the midst of transforming its operations by moving away from citrus production towards diversified agriculture and real estate development. Despite the earnings miss, the company’s stock price rose in aftermarket trading, indicating investor confidence in its strategic transition. The Buy rating from Freedom Capital Markets may further support this positive sentiment among investors.
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