Lavoro announces new 3-year FIDC-Fiagro credit line worth R$310 million

SÃO PAULO, Aug. 2, 2024 (GLOBE NEWSWIRE) — Lavoro Limited (Nasdaq LVRO), the first U.S.-listed, full-service retail agricultural input company in Latin America, today announced a new R$310 million (approximately $55 million at current exchange rates) credit facility with a three-year term, financed through the new Investment Fund for Credit Rights for Agribusiness (FIDC-Fiagro).

The newly created company Lavoro Agro Fundo de Investimentos nas Cadeias Produtivas Agroindustriais (FIDC-Fiagro), established under Brazilian agribusiness investment fund regulations, to invest in agribusiness receivables sold to Lavoro.

The proceeds from this issue will be used to cover Lavoro’s current working capital needs and other general corporate purposes. This constitutes Lavoro’s second FIDC-Fiagro instrument, following the inaugural R$160 million Fiagro created in 2022.

Commenting on the financing, Ruy Cunha, CEO of Lavoro, said: “The new Fiagro company represents another step in our commitment to optimizing our capital structure, helping to realize our long-term growth plans by improving debt maturities and broadening our range of financing sources.”

The issue, divided into two series maturing in July 2027, is managed by the Kanastra Administração de Recursos, with Itaú BBA as the lead coordinator. The offer is available exclusively to major investors such as Itaú BBA and Itaú Asset, with no plans for distribution on the secondary market.

About Lavoro

Lavoro Limited is the largest Brazilian retailer of agricultural inputs and a leading producer of biological agricultural products. Lavoro shares and subscription rights are listed on the Nasdaq Stock Exchange under the symbols “LVRO” and “LVROW”. Through a comprehensive portfolio of products and services, the company enables small and medium-sized farmers to implement the latest emerging agricultural technologies and increase their productivity. Since its establishment in 2017, Lavoro has expanded its reach in Latin America, serving 72,000 customers in Brazil, Colombia and Uruguay through a team of over 1,000 sales representatives (RTV), a network of over 210 retail locations and a digital marketplace and solutions. Lavoro sales representatives are local trusted advisors to farmers, meeting regularly with them to provide agronomic recommendations throughout the crop cycle to achieve optimized results.

Forward-looking statements

The content of any website mentioned or hyperlinked in this press release is for informational purposes only and does not constitute part of or be incorporated into this press release.

Certain statements in this press release are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “goals,” “estimates,” “plan,” “project,” “forecast,” “intends,” “will,” “expects,” “anticipates,” “believes,” “seeks,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding expectations regarding the development of Lavoro’s business and its ability to achieve expected results, increase revenues from existing customers and make excellent acquisitions; opportunities, trends and developments in the agricultural input industry, including with respect to future financial performance in the industry. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as a guarantee, assurance, forecast or definitive statement of fact or probability, and should not be relied upon as such by any investor. Actual events and circumstances are difficult or impossible to predict and will differ from the assumptions. Many actual events and circumstances are beyond Lavoro’s control.

These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, the outcome of any legal proceedings that may be brought against Lavoro in connection with the business combination agreement or the transaction; the ability to maintain the listing of Lavoro’s securities on Nasdaq; the price of Lavoro’s securities may be volatile due to a number of factors, including changes in the competitive and regulated industries in which Lavoro operates, changes in the operating results of competitors, changes in laws and regulations affecting Lavoro’s business; the inability of Lavoro to meet or exceed its financial projections and changes in its consolidated capital structure; changes in general economic conditions; the ability to implement its business plans, forecasts and other expectations; changes in domestic and foreign business, market, financial, political and legal conditions; the outcome of any potential litigation, governmental and regulatory proceedings, investigations and inquiries; costs associated with the business combination and being a public company; and other risks and uncertainties identified from time to time in the proxy statement/prospectus filed by Lavoro with respect to the business combination or in the future, including those under “Risk Factors” contained therein or in other Lavoro documents filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Lavoro currently considers immaterial that could also cause actual results to differ from those contained in the forward-looking statements.

In addition, forward-looking statements reflect Lavoro’s expectations, plans or projections regarding future events and views as of the date of this press release. Lavoro anticipates that subsequent events and developments will cause Lavoro’s ratings to change. However, although Lavoro may elect to update these forward-looking statements at some point in the future, Lavoro expressly disclaims any obligation to do so. These forward-looking statements should not be relied upon as representative of Lavoro’s ratings as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed on forward-looking statements.

Contact info:

Tigran Karapetyan, Head of Investor Relations
[email protected]

Fernanda Rosa, Investor Relations Coordinator
[email protected]