Quarterly report pursuant to Section 13 or 15(d)

Debt.

v3.21.2
Debt.
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
DEBT.

6. DEBT.

 

Long-term borrowings are summarized as follows (in thousands):

 

    September 30,
2021		     December 31,
2020		  
Kinergy line of credit   $ 70,710     $ 32,512  
Pekin revolving loan     9,580       20,580  
ICP revolving loan     7,384       9,384  
Parent notes payable     723       25,533  
CARES Act loans    
—
       9,860  
      88,397       97,869  
Less unamortized debt premium    
—
       230  
Less unamortized debt financing costs     (89 )     (759 )
Less short-term portion     (17,687 )     (25,533 )
Long-term debt   $ 70,621     $ 71,807  

 

Parent Notes Payable – On May 14, 2021, with proceeds from the Company’s sale of its Madera, California facility, the Company repaid $19.3 million of principal on its notes payable, resulting in an aggregate remaining balance of $0.7 million. On November 5, 2021, with proceeds from the Company’s sale of its Stockton, California facility, the Company repaid the remaining outstanding balance on these notes.

 

Pekin and ICP Revolving Loans – On November 5, 2021, with proceeds from the Company’s sale of its Stockton, California facility, the Company repaid in full the outstanding balances on these loans.

 

CARES Act Loans – On May 4, 2020, Alto Ingredients, Inc. and Alto Pekin, LLC, or Alto Pekin, received loan proceeds from Bank of America, NA under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), through the Paycheck Protection Program administered by the U.S. Small Business Administration (“SBA”). Alto Ingredients, Inc. received $6.0 million and Alto Pekin received $3.9 million in loan proceeds. Under the terms of the loans, certain amounts may be forgiven if they are used for qualifying expenses as described in the CARES Act. In June 2021, the SBA approved Alto Pekin’s forgiveness application for the full amount of $3.9 million, and accordingly, the Company recognized income from loan forgiveness for the three months ended June 30, 2021. In September 2021, the SBA approved Alto Ingredients, Inc.’s forgiveness application for the full amount of $6.0 million, and accordingly, the Company recognized income from loan forgiveness for the three months ended September 30, 2021. The SBA may audit the loan forgiveness applications and further examine eligibility for forgiveness, including the facts and circumstances existing at the time the loans were made. The Company can provide no assurances that any loan forgiven will not require repayment following an audit by the SBA.

 

Maturities of Long-term Debt – The Company’s long-term debt matures as follows (in thousands):

 

December 31:      
2021   $ 723  
2022     16,964  
2023     70,710  
    $ 88,397  

 

Restrictions – At September 30, 2021, there were approximately $250.3 million of net assets at the Company’s subsidiaries that were not available for transfer to Alto Ingredients, Inc. in the form of dividends, loans or advances due to restrictions contained in the credit facilities of the Company’s subsidiaries.