April 1, 2010
Alico Negotiates a One Time Debt
LaBelle, FL, April 1, 2010, Alico, Inc. (NASDAQ: ALCO), a land management
company, announced that it had received a one time reduction of its debt service
coverage covenant ratio requirement from its primary lender. Under the terms of
the agreement, the debt service covenant ratio is reduced from 1.10 to 0.85. The
reduction applies only to the quarter ending March 31, 2010 and only to the debt
service covenant ratio. All other ratios and requirements remain intact.
JD Alexander, the Company's CEO stated "We appreciate the cooperation of
Farm Credit in relaxing this covenant. We have taken progressively more
aggressive steps to reduce costs during the current quarter; however, the recent
freezes in January 2010 negatively impacted our operating results. We believe
that the Company will come very close to achieving the unadjusted loan covenant
ratio but in an abundance of caution we believe that seeking the covenant
reduction is a prudent step. There was no cost associated with obtaining the
modification and we do not anticipate needing future loan covenant reductions.
The Company also agreed that no dividend will be declared or paid for the
quarter ending March 31, 2010. The Company is currently in discussions to
restructure its debt in a manner that will enhance its ability to maintain
future compliance with the debt service coverage covenant."
About Alico, Inc.
Alico, Inc., a land management company operating in Central and Southwest
Florida, owns approximately 135,500 acres of land located in Collier, Glades,
Hendry, Lee and Polk counties. Alico is involved in various agricultural
operations and real estate activities. Alico's mission is to grow its asset
values through its agricultural and real estate activities to produce superior
long-term returns for its shareholders.
For Further Information Contact:
La Belle, Florida
Statements in this press release that are not statements of historical or
current fact constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, such as the statement that the Company will come close to achieving
its debt service covenant requirement and the anticipation that the Company will
not need future reductions and that future compliance is assured involve known
and unknown risks, uncertainties and other unknown factors that could cause the
actual results of the Company to be materially different from the historical
results or from any future results expressed or implied by such forward-looking
statements. The forward-looking statements contained herein are also subject
generally to other risks and uncertainties that are described from time to time
in the Company's reports and registration statements filed with the Securities
and Exchange Commission.