By Dean Seal
Shares of S&W Seed jumped after the company said it had closed a new $25 million revolving credit agreement with Mountain Ridge Capital.
The stock was up 18% at $6.78 in premarket trading. Shares had fallen 57% year-to-date when the market closed Monday.
The middle-market agricultural company said after Monday's closing bell that the agreement replaces an existing facility with CIBC Bank USA.
In connection with the new agreement, S&W Seed's largest shareholder, MFP Partners, provided a letter of credit with a face amount equal to $13 million. The letter of credit will be used as collateral for the Mountain Ridge arrangement.
S&W Seed also said it has repurchased 200,000 shares of stock directly from MFP in a private transaction.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
December 24, 2024 07:45 ET (12:45 GMT)
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