Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
February 14, 1997
Cadiz Land Company, Inc.
(Exact name of issuer as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-12114 77-0313235
(Commission File Number) (IRS Employer Identification No.)
10535 Foothill Boulevard, Suite 150, Rancho Cucamonga, CA91730
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (909) 980-2738
ITEM 5. OTHER EVENTS
The Registrant and its wholly owned subsidiary, Cadiz
Valley Development Corporation ("CVDC") (collectively,
the "Borrowers") have reached an agreement with
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.
("Rabobank") whereby both the maturity date of Borrowers'
debt facilities with Rabobank and the right of Borrowers
to obtain two one-year extensions of this maturity date
have been extended to April 30, 1997. Borrowers have
also reached an agreement with Henry Ansbacher & Co.
Limited ("Ansbacher") whereby the maturity date of
Borrowers' debt facilities with Ansbacher has been
extended to March 13, 1997.
The prior maturity date of Borrowers' debt facilities
with Ansbacher and Rabobank had been January 31, 1997, as
of which date the obligations to Ansbacher and Rabobank
were approximately $9.6 million and $9.1 million,
respectively.
The Registrant requested such extensions primarily for
the purpose of allowing the Registrant to continue to
evaluate and choose from several possible alternative
means of repayment and/or refinancing of the Ansbacher
and Rabobank facilities. The determination of which
funding mechanism (or combination ) will be utilized by
the Registrant will be evaluated on an ongoing basis by
the Registrant in consultation with an investment banking
firm which has been retained by the Registrant.
In this regard, the Registrant is considering a financing
during 1997 which would be used, in addition to repayment
of the Ansbacher and Rabobank facilities, to refinance
the existing primary debt facilities of the Registrant's
wholly owned Sun World International, Inc. subsidiary
("Sun World") upon terms which management of the
Registrant would view as more favorable to the Registrant
and Sun World. If the Registrant elects to proceed with
such a financing, the terms of the extension agreement
with Ansbacher provide for consideration of a further
extension to allow time for completion.
The terms of the Registrant's two one-year extension
options for the Rabobank debt are essentially the same as
those agreed upon by the parties in September 1996,
except that the date by which borrower must have
exercised the first extension has been changed from
January 31, 1997 to April 30, 1997. As before, it is a
condition to such extension that the total outstanding
debt to Rabobank does not exceed $8,500,000 at the time
such extension becomes effective. Upon exercise of each
of the first and second extensions, the Registrant would
be required to pay to Rabobank certain fees. The
interest rate to be in effect during each extension
period will be at Rabobank's cost of funds plus one and
one quarter percent (1 1/4%). Under the terms of the
agreement whereby the maturity date of this debt is to be
extended to April 30,1997, this interest rate will be
given retroactive effect to February 1, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned hereunto duly authorized.
Cadiz Land Company, Inc.
(Registrant)
By: /s/ Susan K. Chapman
----------------------
Susan K. Chapman
Chief Financial Officer
Dated: February 14, 1997
