American Vanguard extends credit facility maturity to end of 2026

Published 19/08/2025, 13:06

NEWPORT BEACH - American Vanguard Corporation (NYSE:AVD), a specialty agricultural products company with a market capitalization of approximately $150 million, has extended the maturity of its senior credit facility to December 31, 2026, following an amendment agreement with its lending group led by BMO, the company announced Tuesday. According to InvestingPro data, the company maintains a healthy current ratio of 1.91, indicating strong short-term liquidity.

The specialty and agricultural products company, which develops products for crop protection, turf management, and public health, highlighted the importance of this extension during its ongoing business transformation.

"We would like to thank our lending group for extending the maturity of our credit agreement at this important juncture for the company," said Douglas Kaye III, Chief Executive Officer of American Vanguard, in a press release statement.

Kaye noted that BMO has been leading the company’s lending group for over 35 years and described the extension as a "vote of confidence" in American Vanguard’s ongoing transformation efforts.

The CEO referenced the company’s second quarter financial results as indicative of future potential, stating that the extension would allow management to demonstrate the company’s earnings capabilities more clearly to investors. While InvestingPro data shows recent challenges in profitability, analysts are projecting a return to profit this year, with the stock showing strong momentum with a 13% gain year-to-date.

American Vanguard has expanded its operations significantly over the past two decades through product and business acquisitions, now maintaining more than 1,000 product registrations worldwide, according to the company.

The credit facility amendment comes as the company continues its focus on specialty and agricultural products for crop protection, turf management, and public and animal health markets. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting a consensus target price of $12 per share. Discover more insights and 6 additional ProTips for AVD with an InvestingPro subscription, including detailed analysis of the company’s 29-year dividend payment history.

In other recent news, American Vanguard Corporation reported its financial results for the second quarter of 2025. The company achieved net sales of $129 million, representing a 1% increase compared to the previous year. Additionally, adjusted EBITDA almost doubled, highlighting strong operational performance. Despite these financial improvements, the stock experienced a minor decline in aftermarket trading. This reflects a complex market reaction to the company’s earnings report. These developments are part of the ongoing financial trajectory for American Vanguard.

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