Westrock Coffee sets up new financing for its beverage solutions segment

Westrock Coffee Company (WEST) announced the closing of an upsized refinancing for its beverage solutions segment through a new credit agreement led by Coöperatieve Rabobank U.A. The refinancing will provide for a $300M senior secured first lien term loan facility and a $300M senior secured first lien revolving credit facility, for a total commitment of $600M, up from $425M under the prior credit agreement.

As part of the refinancing, the company also announced the repurchase of $40M of its 2029 notes for approximately $21M in cash and the issuance of approximately 2.4M shares of its common stock and amendments to its remaining $32M of 2029 notes that, among other things, extended their maturity to January 2032 and gave the company the ability to optionally redeem the 2032 Notes if its shares trade at or above $14.25 for more than 120 consecutive trading days.

"This refinancing is a vote of confidence in Westrock Coffee’s platform and our long-term strategy. With a strong group of lenders led by Rabobank, these new credit facilities let us stay focused on what matters most: scaling our extract and ready-to-drink capabilities and delivering for the world’s leading beverage brands," highlighted CEO Scott Ford.

CFO Chris Pledger noted the new credit facilities provide approximately $270M of liquidity and lower scheduled amortization, allowing Westrock Coffee (WEST) to retain more cash in the business as it continues to reduce leverage.

Shares of Westrock Coffee (WEST) were down 0.3% in premarket action.