ArborGen Renegotiates and Extends Synovus Agreement

17 November 2020 - ArborGen Holdings (ArborGen) announced today the renegotiation and extension of its revolving credit facility agreement with Synovus Financial Corporation (Synovus) relating to a $17 million letter of credit (LOC) facility in the US. The amendment extended the term of the LOC from 31 August 2021 to 31 August 2023. As part of the amendment to the agreement, Synovus has also agreed to: - increase the annual 60-day (continuous) pay down maximum borrowing limit to $10 million, from $7.5 million previously, and - release the final $2 million of restricted cash Synovus previously required as part collateral for the LOC facility. The interest rate applicable to the LOC is the 30-day London Inter-bank Offered Rate (LIBOR) base rate plus 2.75% with a minimum annual rate of 3.5%. ArborGen's chairman, Dave Knott, said, "We are very pleased with the renegotiation of the Synovus LOC which further reinforces the strong established relationships we have with our banks." ArborGen has two further bank debt facilities in the US: - A $9.9 million non-revolving promissory note with AgSouth Farm Credit, with a maturity date of 1 May 2026, which is secured against ArborGen's US real estate excluding the Ridgeville headquarters, and - An $11.1 million mortgage with Synovus, secured by ArborGen's headquarters in Ridgeville, South Carolina. ___________________ ArborGen ArborGen is the largest commercial global seedling supplier and a leading provider of advanced genetics, for the forest industry. Employing state-of-the-art technology, ArborGen is developing high-value products that significantly improve the productivity of a given acre of land by enabling our customers to grow trees that yield more wood per acre with greater consistency and quality in a shorter period of time. ArborGen's products are improving the sustainability of plantation forests while helping to meet the world's growing need for wood, fibre and energy. For more information, please visit ArborGen's website at www.arborgen.com. All references to currencies in this document are in US dollars (US$). End CA:00363379 For:ARB Type:GENERAL Time:2020-11-17 12:22:31