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Line of Credit and Long-term Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Line of Credit and Long-term Debt

9. LINE OF CREDIT AND LONG-TERM DEBT

 

 

 

Balance outstanding as of December 31,

 

 

 

2023

 

 

2022

 

Term Loan - ("FCC Loan") - repayable by monthly principle of payments of $164 and accrued interest at a rate of 8.96%; matures May 3, 2027

 

$

22,788

 

 

$

24,755

 

Term Loan - Pure Sunfarms - C$19.0M - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount, interest rate of 8.95%; matures February 2026

 

 

8,298

 

 

 

9,664

 

Term loan - Pure Sunfarms - C$25.0 - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount starting June 30, 2021, interest rate of 8.95%; matures February 2026

 

 

13,201

 

 

 

14,867

 

BDC Facility - Pure Sunfarms - non-revolving demand loan repayable by monthly principal payments of C$52 and accrued interest at a rate of 10.95%, matures December 31, 2031

 

 

3,771

 

 

 

4,181

 

Total

 

$

48,058

 

 

$

53,467

 

On March 13, 2023, the Company entered into a Note Modification Agreement (the “Modification”) for its line of credit ("Operating Loan"). The Modification eliminated the use of LIBOR as a basis to determine certain interest rates and transitioned to the Secured Overnight Financing Rate (“SOFR”) for such purposes. This Modification did not have a material effect on the Company's results of operations or its financial position. The Company’s Operating Loan had $4,000 amount drawn on the facility as of December 31, 2023 and December 31, 2022.

The carrying value of the assets and securities pledged as collateral for the FCC Loan as of December 31, 2023 and 2022 was $117,293 and $113,159, respectively.

The carrying value of the assets pledged as collateral for the Operating Loan as of December 31, 2023 and 2022 was $28,034 and $26,666, respectively.

The Pure Sunfarms line of credit had $0 and $3,529 outstanding as of December 31, 2023 and December 31, 2022, respectively. As of December 31, 2023 and December 31, 2022, Pure Sunfarms had an outstanding letter of credit issued to BC Hydro against the revolving line of credit of $0 and C$4,145, respectively.

The Company is required to comply with financial covenants, measured either quarterly or annually depending on the covenant. The Company was not in compliance with one financial covenant under the FCC Loan. Subsequent to December 31, 2023 the Company received a waiver from FCC for the annual test on December 31, 2023 for one financial covenant. Unless amended, the covenant will be reinstated for fiscal year 2024. FCC measures the Company's financial covenants once a year on the last day of the year.

Village Farms was in compliance with all of its remaining covenants under its other credit facilities.

The weighted average interest rate on short-term borrowings as of December 31, 2023 and 2022 was 9.44% and 9.12%, respectively.

Accrued interest payable on the Credit Facilities and loans as of December 31, 2023 and 2022 was $390 and $398, respectively, and these amounts are included in accrued liabilities in the statements of financial position.

The aggregate annual principal maturities of long-term debt for the next five years and thereafter are as follows:

 

2024

 

$

5,833

 

2025

 

 

5,833

 

2026

 

 

17,148

 

2027

 

 

17,358

 

2028

 

 

471

 

Thereafter

 

 

1,415

 

 

$

48,058