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Microcap & Penny Stocks : ABTX - Agribiotech -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (8286)	12/10/1999 12:03:00 AM
From: taxman	Read Replies (2) \| Respond to of 8359

what "viable options" are mr budd referring to? regards Henderson, Nevada, Dec. 7 (Bloomberg) -- AgriBioTech, a money-losing turf and forage seed company, will be required to raise more money to get a new five-year loan and revolving credit. AgriBioTech announced in October that it had signed a commitment letter with GE Capital for $115 million in revolving credit and a five-year loan of up to $20 million. The loan was contingent on AgriBioTech coming up with another $5 million in unsecured debt. GE Capital has raised that requirement to an estimated $15 million, AgriBioTech said today. AgriBioTech had hoped to close the loan by early December. The company has warned investors that without new financing, it might not be able to meet loan payments of $12 million a year and it has struggled to integrate more than 30 acquisitions made over four years. In a statement, Chief Executive Richard Budd said he was disappointed but added that ``we have a number of viable options for resolving this new hurdle and completing the refinancing package.' AgriBioTech said it had raised $2.5 million by selling 835,407 shares of its common stock to an institutional investor. The loan would replace AgriBioTech's existing $100 million revolving credit with Bank of America and other lenders. The new loan, which GE Capital would syndicate, would be secured by substantially all of AgriBioTech's assets. The company said it lost $3.6 million in its fiscal first quarter that ended Sept. 30, compared with net income of $333,000 in the year-ago quarter. AgriBiotech's shares fell 5/16 to close at 2 9/16 in trading on the Nasdaq stock exchange. ¸1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.