Financing comprised of $50 million public offering of depositary shares and $50 million senior secured term loan
LOS ANGELES – July 13, 2021 – A multi-office Greenberg Traurig, LLP attorney team represented Cadiz Inc. (Nasdaq GM: CDZI), a California sustainable water resource and agricultural business, in its underwritten public offering of 2,300,000 depositary shares (representing interests in shares of 8.875% Series A Cumulative Perpetual Preferred Stock) at an initial public offering price of $25.00 per depositary share.
The offering, which closed on July 2, 2021, raised gross proceeds of $57.5 million, including the exercise of the underwriters’ over-allotment option. The depositary shares began trading on the Nasdaq Global Market on July 8, 2021, under the symbol CDZIP. B. Riley Securities, Inc. acted as representative of the underwriters in the public offering.
In addition, Greenberg Traurig attorneys represented Cadiz Inc. in its $50 million senior secured term loan from an affiliate of B. Riley Securities, Inc., which Cadiz consummated concurrently with its public offering of depositary shares.
Cadiz used the net proceeds of the public offering and term loan to repay in full its senior secured term loan with Apollo Special Situations Fund, LP and fund a segregated dividend account for the depositary shares, with the balance to be used for working capital.
The Greenberg Traurig Capital Markets team was led by shareholder Kevin Friedmann and included shareholders Laurie L. Green and Kelly A. Terribile, with support from associates Siyuan An and Douglas K. Aguililla.
Cadiz’s public offering and term loan transactions follow a $15 million registered direct offering of its common stock to institutional investors, which closed in June 2021. Greenberg Traurig represented Cadiz in the registered direct offering and B. Riley Securities, Inc. acted as placement agent. Cadiz used the net proceeds of the registered direct offering to fund a $19 million payment due under its purchase agreement with El Paso Natural Gas Company for Cadiz’s acquisition of its 220-mile Northern Pipeline.
Founded in California in 1983, Cadiz Inc. owns 70 square miles of property with significant water resources in Southern California and is the largest agricultural operation in San Bernardino County, California. Cadiz Inc. is dedicated to pursuing sustainable water storage and supply projects and practicing responsible stewardship of its land, water, and agricultural resources.
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