Mission Produce, Inc. 8-K

What Happened

• On April 1, 2026 Mission Produce, Inc. (AVO) and certain subsidiaries entered into an Amended and Restated Credit Agreement with Bank of America, N.A. as administrative agent and a syndicate of lenders. The new senior secured credit facilities total $550 million to replace the prior credit agreement and provide financing for the company, including funding related to the planned acquisition of Calavo Growers, Inc.

Key Details

• Total facilities: $550 million comprised of a $200M revolving facility, a $200M Term A-1 facility, and a $150M Term A-2 facility.
• Draws at closing: $50M drawn on Term A-1 and $50M drawn on Term A-2 (total $100M drawn on April 1, 2026); remaining portions of both term loans available on the "Cantaloupe Acquisition Funding Date" to help finance the Calavo acquisition and refinance Calavo debt.
• Revolver specifics: $200M revolver with a $25M U.S. dollar letter-of-credit sublimit and a $20M U.S. dollar swingline sublimit; accordion feature allows increase up to $150M subject to lender approval.
• Interest and fees: initial spreads until first-quarter compliance certificate (example: 1.50% per annum for Term SOFR loans under the Revolver and Term A-1; 1.75% for Term A-2 SOFR loans); thereafter pricing varies by consolidated total net leverage ratio (pricing grid ranges shown in filing). Unused commitment fees range from 0.175%–0.300% per annum.
• Covenants and security: financial covenants include max consolidated total net leverage ratio ≤ 3.50x and min consolidated fixed charge coverage ratio ≥ 1.25x. The facility is senior secured by substantially all assets of the company and certain subsidiaries; subsidiaries guaranty obligations.

Why It Matters

• This arranged financing provides near-term liquidity (including $100M drawn at closing) and committed capacity to fund Mission Produce’s planned acquisition of Calavo Growers and to refinance Calavo’s debt, which could materially affect the company’s capital structure and cash needs.
• The agreement sets multi-year maturities (Revolver and Term A-1 mature April 1, 2031; Term A-2 matures April 1, 2033), establishes interest cost tied to leverage levels, and contains covenants that could limit flexibility if leverage or coverage ratios deteriorate — all important considerations for investors monitoring debt levels, interest expense, and credit risk.