Mission Produce, Inc.AVO

Mission Produce, Inc. Debt Disclosure

10-KFiled Dec 18, 20253 min read
Debt
Credit facility
In October 2022, the Company entered into a third amendment to its syndicated credit facility with Bank of America (the “BoA credit facility”) Merrill Lynch, originally dated October 2018, as amended in September 2020 and April 2022. The credit facility has a total borrowing capacity of $250 million, comprised of two senior term loans totaling $100 million and a revolving credit agreement of up to $150 million. The loans are secured by real property, personal property and the capital stock of the Company’s subsidiaries. Borrowings under the credit facility bear interest at a spread over the Secure Overnight Financing Rate (“SOFR”) ranging from 1.5% to 2.5% depending on the Company’s consolidated total net leverage ratio. The credit facility also includes a swing line facility and an accordion feature which allows the Company to increase the borrowings by up to $125 million, with bank approval. We pay fees on unused commitments on the credit facility that accrue at rates ranging from 0.18% to 0.3% depending upon the Company’s consolidated total net leverage ratio.
The credit facility requires the Company to comply with financial and other covenants, including limitations on investments, capital expenditures, dividend payments, amounts and types of liens and indebtedness, and material asset sales. The Company is also required to maintain certain leverage and fixed charge coverage ratios. As of October 31, 2025, the Company was in compliance with all financial covenants of the credit facility.
Long-term debt under the BoA credit facility consisted of the following:
October 31,
(In millions)20252024
Revolving line of credit. The interest rate is variable, based on SOFR plus a spread that varies with the Company’s leverage ratio. As of October 31, 2025 and 2024 the interest rate was 5.63% and 6.38%, respectively. Interest is payable monthly and principal is due in full in October 2027.
$5.0 $20.0 
Senior term loan (A-1). The interest rate is variable, based on SOFR plus a spread that varies with the Company’s leverage ratio. As of October 31, 2025 and 2024, the interest rate was 5.56% and 6.29%, respectively. Interest is payable monthly, principal is payable quarterly and due in full in October 2027.
42.5 45.0 
Senior term loan (A-2). The interest rate is variable, based on SOFR plus a spread that varies with the Company’s leverage ratio. As of October 31, 2025 and 2024, the interest rate was 5.81% and 6.54% respectively. Interest is payable monthly, principal is payable quarterly and due in full in October 2029.
48.5 49.0 
Total long-term debt96.0 114.0 
Less debt issuance costs(0.2)(0.3)
Long-term debt, net of debt issuance costs95.8 113.7 
Less current portion of long-term debt(3.0)(3.0)
Long-term debt, net of current portion$92.8 $110.7 
Other
Certain of our consolidated subsidiaries may also enter into short-term bank borrowings or supplier financing programs from time to time. Short-term borrowings outstanding were $4.5 million and $3.0 million as of October 31, 2025 and 2024, respectively, with weighted average interest rates of 8.70% and 9.91%, respectively. Our Blueberries business also obtains loans from shareholders from time to time, which accrue interest at rates ranging from 5.0% to 6.5%. Amounts outstanding as of October 31, 2025 are expected to be repaid by the end of fiscal 2026.
The Company may issue standby letters of credit through banking institutions. As of October 31, 2025, total letters of credit outstanding were $2.0 million and at October 31, 2024, none were outstanding.
As of October 31, 2025, future principal payments for our long-term debt were as follows:

Year ending October 31,(In millions)
2026$3.0 
202745.5 
20288.8 
202938.7 
Thereafter— 
$96.0 

Historical Timeline

Fiscal YearFiled
2025Dec 18, 2025Showing above
2024Dec 19, 2024
2023Dec 21, 2023
2022Dec 22, 2022
2021Dec 22, 2021

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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