Farmer Bros. Co announces new Nasdaq credit facilities: FARM
NORTHLAKE, Texas, April 27, 2021 (GLOBE NEWSWIRE) – Farmer Bros. Co. (NASDAQ: FARM) (the “Company”) today announced the completion of a new $ 127.5 million four-year financing agreement $ 80.0 million asset-backed revolving credit facility and a $ 47.5 million term loan maturing in April 2025. This agreement replaces its existing revolving credit facility which was due to mature in November 2023, and provides significantly greater borrowing capacity during the term of the agreement. deal at a lower overall cost. to borrow. In addition, the new agreement reduces or eliminates several covenants from its existing credit facility.
Scott Drake, Chief Financial Officer, said: “We are pleased to enter into this new financing agreement, which provides greater flexibility to leverage our significant real estate and equipment in addition to our traditional ABL assets, and is a important step in preserving our financial liquidity and further solidifying our capital structure. This new agreement also reduces the overall cost structure of our debt while lengthening maturities and eliminating certain commitments, allowing us to focus more on our key initiatives to accelerate growth and innovation and better position ourselves on the market. long term.
The financing was led by Wells Fargo Bank. In accordance with the terms of the financing agreement, the proceeds may be used for general corporate purposes and the Company may prepay the amounts borrowed under the revolving asset-backed credit facility at any time without premium. nor penalty.
About Farmer Brothers
Founded in 1912, Farmer Bros. Co. is a nationwide roaster, wholesaler and distributor of coffee, tea and culinary products. The company’s product lines include organic, direct trade and sustainably produced coffee. With a robust line of coffee, hot and iced teas, cappuccino mixes, spices and pastry / cookie mixes, the company offers extensive beverage and culinary planning services to its US-based customers. United. The company serves a wide variety of customers, from small independent restaurants and food service operators to large institutional buyers such as chain restaurants, department stores and convenience stores, hotels, casinos, healthcare facilities and gourmet cafes. , as well as grocery chains offering private label coffee. and branded coffee and tea consumer products, and foodservice distributors.
Certain statements contained in this press release constitute “forward-looking statements”. When used in this communication, the words “will”, “expect”, “anticipate”, “estimate” and “believe”, as well as similar expressions and statements made in the future or which refer to future events or developments, are intended to identify such forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, the extent and duration of the business and customer disruption related to the COVID-19 pandemic, changes in the company’s strategic plans or initiatives, competition, the company to accomplish its strategic initiatives, business conditions in the coffee industry and the food industry in general, weather conditions and special or unusual events, as well than other factors described from time to time in our SEC filings. These statements are based on management’s current expectations, assumptions, estimates and observations regarding future events and include any statement that does not relate directly to historical or current fact; actual results may differ materially in part due to risk factors set forth in our most recent annual, periodic and current reports filed with the SEC. No undue reliance should be placed on any forward-looking statements contained in this communication, which are based on information available to the company as of the date hereof, and the company assumes no obligation to update such statements.
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