Refinancing to require additional capital

Tuesday, Dec. 7, 1999 | 11:56 a.m.

AgriBioTech Inc.'s financial consultants say the company will need more capital than earlier expected to complete a long-term financing package to fund a revised business plan.

The Henderson-based turfgrass seed company announced today that GE Capital said it would need an additional $10 million to complete the package.

AgriBioTech signed a commitment letter with GE Capital to arrange a syndicate of lenders to provide a $115 million credit line and a $20 million loan. GE Capital committed to provide $5 million in a letter signed last month, but now estimates the total necessary to complete the financing at $15 million.

Richard Budd, chairman and chief executive officer of AgriBioTech, said he was disappointed in the delay, "but we have a number of viable options for resolving this new hurdle and completing the refinancing package."

This morning, AgriBioTech's stock was down 31 cents to $2.56, dipping below its previous 52-week low price of $2.81.

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