Lifeway Foods, Inc. Enters into Fifth Modification to Credit Agreement

Lifeway Foods, Inc. (NASDAQ:LWAY) recently announced that it, along with its subsidiaries Fresh Made, Inc. and Lifeway Wisconsin, Inc., has entered into the Fifth Modification to the Amended and Restated Loan and Security Agreement with CIBC Bank USA, the Borrowers’ current lender. The agreement, dated February 5, 2025, introduces significant changes to the existing Credit Agreement.

The Fifth Modification includes several key amendments to the Credit Agreement. Firstly, it increases the commitment for revolving loans under the Credit Agreement from $5 million to $25 million. The interest on these revolving loans can be paid at either the lender Base Rate or the SOFR plus 1.75%. Secondly, the modification extends the Termination Date of the Credit Agreement to February 5, 2028. Lastly, it replaces the previous quarterly minimum working capital financial covenant with a new financial covenant to maintain a maximum cash flow leverage ratio not exceeding 2.00 to 1.00 for each fiscal quarter starting from the quarter ending March 31, 2025.

Besides these modifications, the material terms and conditions of the Credit Agreement remain mostly unchanged. It is important to note that the Borrowers did not have any outstanding borrowings at the time of entering into this Fifth Modification.

For detailed information on the Fifth Modification, interested parties are encouraged to refer to the full documentation filed as Exhibit 10.1 with the Securities and Exchange Commission.

This report falls under Item 2.03, which pertains to the creation of a direct financial obligation or an off-balance sheet arrangement of a registrant, and Item 9.01 relating to Financial Statements and Exhibits.

In summary, Lifeway Foods, Inc. has made significant adjustments to its Credit Agreement, enabling increased financial flexibility and setting new financial covenants to ensure sound financial management moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lifeway Foods’s 8K filing here.

About Lifeway Foods

Lifeway Foods, Inc produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types. The company offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; drinkable yogurt; and fresh made butter and sour cream.