Full Press Release Details
Announces Refinancing of its Bank Debt
Maine - March 11, 2020 - ImmuCell Corporation (Nasdaq: ICCC) ("ImmuCell" or the "Company"),
a growing animal health company that develops, manufactures and markets scientifically-proven and practical products that improve
the health and productivity of dairy and beef cattle, today announced a complete refinancing of its bank debt.
Company closed on an $8.6 million debt refinancing package with Gorham Savings Bank comprised of three components. The first is
a ten-year $5.1 million mortgage note bearing interest at a fixed rate of 3.50% per annum with monthly principal and interest
payments due based on a twenty-five-year amortization schedule. The second component is a seven-year $3.5 million note bearing
interest at a fixed rate of 3.50% per annum with monthly principal and interest payments due based on a seven-year amortization
schedule. The proceeds were used to provide some additional working capital but mostly to refinance $8.3 million in outstanding
bank debt and pay off a related interest rate swap termination liability of $165,000. The third component is a $1 million line
of credit, which bears interest at a variable rate equal to the one-month LIBOR plus 2.15%.
is a great opportunity for us to lower our interest rate exposure and extend our loan repayment terms," commented Michael
F. Brigham, President and CEO. "Given the extreme volatility being experienced in the financial markets right now, I believe
we will be well-served with this debt financing over the long term."
Company previously had five different loans with interest rates ranging from fixed rates of 4.38% and 6.04% to variable rates
of the one-month LIBOR plus 2.25% that had been entered into during different stages of its capital investment programs, including
one with a $452,000 balloon principal payment due during the third quarter of 2020.
indebtedness is secured by mortgages and security interests covering substantially all of the Company's assets. By bank
debt covenant, the Company is required to maintain $1.4 million in an escrow account until certain financial conditions are met
based on the Company's performance during 2020 or after and provided adequate collateral values relative to outstanding
loan balances are achieved. In comparison, the covenants included in the repaid debt required the Company to hold $2 million in
otherwise unrestricted cash.
Gorham team has been great to work with," Mr. Brigham concluded. "They are flexible and creative and met our debt
financing needs effectively, on a timely basis."
Gorham Savings Bank:
in Gorham, Maine since its founding in 1868, Gorham Savings Bank is a depositor-owned community bank delivering a full suite of
financial services tailored to the needs of Southern Maine's businesses and consumers. As the only bank headquartered in Cumberland
County, GSB serves and supports businesses that value local management, know-how and accountability. The bank offers consumer
savings accounts, personal loans, mortgages, HELOCs, CDs, IRAs and financial planning services through its 13 branches and growing
network of ATMs, ITMs and mobile services. Gorham Savings Bank is a tireless advocate for the well-being of the communities it
serves, donating thousands of volunteer hours to dozens of community-based initiatives annually. Gorham Savings Bank is a member
of the FDIC. Learn more at: http://www.gorhamsavingsbank.com.
ImmuCell Corporation's (Nasdaq: ICCC) purpose is to create scientifically-proven and practical products
that improve the health and productivity of dairy and beef cattle. ImmuCell markets First Defense ,
providing Immediate Immunity to newborn dairy and beef livestock, and is in the late stages of developing Re-Tain ,
a novel treatment for subclinical mastitis without a milk discard requirement that provides an alternative to traditional antibiotics.
Investors are encouraged to review the Company's updated Corporate Presentation slide deck that provides an overview of
the Company's business and is available under the "Investors" tab of the Company's website at www.immucell.com,
or by request to the Company. The Company expects to file its Annual Report on Form 10-K on or about March 27, 2020. Press releases
and other information about the Company are available at: http://www.immucell.com.
Michael F. Brigham, President and CEO
ImmuCell Corporation
Diaz, Robert Blum and Joe Dorame
Lytham Partners, LLC
Note Regarding Forward-Looking Statements (Safe Harbor Statement):
Press Release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating
to: our plans and strategies for our business; projections of future financial or operational performance; the timing and outcome
of pending or anticipated applications for regulatory approvals; factors that may affect the dairy and beef industries and future
demand for our products; the scope and timing of ongoing and future product development work and commercialization of our products;
future costs of product development efforts; the estimated prevalence rate of subclinical mastitis; the expected efficacy of new
products; estimates about the market size for our products; future market share of and revenue generated by current products and
products still in development; our ability to increase production output and reduce costs of goods sold associated with our new
product, Tri-Shield First Defense ; the future adequacy of our own manufacturing facilities or those of
third parties with which we have contractual relationships to meet demand for our products on a timely basis; the anticipated
costs of (or time to complete) planned expansions of our manufacturing facilities and the adequacy of our funds available for
these projects; the continuing availability to us on reasonable terms of third-party providers of critical products or services;
the robustness of our manufacturing processes and related technical issues; estimates about our production capacity, efficiency
and yield; the future adequacy of our working capital and the availability and cost of third-party financing; future regulatory
requirements relating to our products; future expense ratios and margins; future compliance with bank debt covenants; future cost
of our variable interest rate exposure on most of our bank debt; costs associated with sustaining compliance with current Good
Manufacturing Practice (cGMP) regulations in our current operations and attaining such compliance for the facility to produce
the Nisin Drug Substance; implementation of international trade tariffs that could reduce the export of dairy products, which
could in turn weaken the price received by our customers for their products; our effectiveness in competing against competitors
within both our existing and our anticipated product markets; the cost-effectiveness of additional sales and marketing expenditures
and resources; anticipated changes in our manufacturing capabilities and efficiencies; the value of our net deferred tax assets;
projections about depreciation expense and its impact on income for book and tax return purposes; anticipated market conditions;
and any other statements that are not historical facts. Forward-looking statements can be identified by the use of words such
as "expects", "may", "anticipates", "aims", "intends", "would",
"could", "should", "will", "plans", "believes", "estimates",
"targets", "projects", "forecasts", "seeks" and similar words and expressions.
In addition, there can be no assurance that future developments affecting us will be those that we anticipate. Such statements
involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays
in development, testing, regulatory approval, production and marketing of our products (including the First Defense
product line and Re-Tain ), competition within our anticipated product markets, customer acceptance of our
new and existing products, product performance, alignment between our manufacturing resources and product demand, our reliance
upon third parties for financial support, products and services, changes in laws and regulations, decision making and delays by
regulatory authorities, currency values and fluctuations and other risks detailed from time to time in filings we make with the
SEC, including our Quarterly Reports on Form 10-Q, our Annual Reports on Form 10-K and our Current Reports on Form 8-K. Such statements
involve risks and uncertainties and are based on our current expectations, but actual results may differ materially due to various
factors, including the risk factors summarized above.