Business
Westrock Coffee Company Announces $75.0 Million Equity Investment to Support Long-Term Growth Strategy
Amends Existing Credit Agreement Creating Greater Revolver Access Updates Full-Year 2023 Outlook Announces Inclusion in the Russell 3000® and Russell 2000®
About this update from Westrock Coffee Company
[{"type":"text","content":"Amends Existing Credit Agreement Creating Greater Revolver Access Updates Full-Year 2023 Outlook Announces Inclusion in the Russell 3000® and Russell 2000® LITTLE ROCK, Ark., June 30, 2023 (GLOBE NEWSWIRE) -- Westrock Coffee Company (NASDAQ: WEST) (“Westrock Coffee” or the “Company”) today announced that it has entered into definitive agreements with affiliates of HF Capital, LLC and the Herbert Hunt family to make aggregate equity investments of $75.0 million in the Company through the purchase of 7,500,000 shares of Company common stock at a price of $10.00 per share. The transactions are expected to close in August 2023, subject to the satisfaction of customary closing conditions, including, in the case of the investment by HF Capital, termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The Company also announced it has amended its existing $400 million credit agreement to (i) increase the Company’s total net leverage financial covenant for a period of time not to exceed April 1, 2025, and (ii) to raise the minimum interest coverage ratio from 1.50x to 2.00x. Scott T. Ford, CEO and Co-founder stated, “We are excited to announce both a follow-on $50.0 million equity investment by HF Capital, one of the original investors in our go-public transaction, and a $25.0 million equity investment by the Herbert Hunt family, a new investor who was excited for the opportunity to partner with our team as we expand our extract and ready-to-drink (“RTD”) capabilities. In addition, we are pleased to announce an amendment to our credit facility that allows us greater access to our revolver as we continue to build out our Conway, Arkansas extract and RTD facility. Together, the equity investments and credit agreement amendment form part of a capital plan that allows us to not only complete the previously announced Phase 1 and 2 expansions, which consist of high-speed can and glass bottle lines, a multi-serve bottle line, and bag-in-box and bulk lines, but now, two additional can lines and an industry leading product development lab and FDA certified pilot plant to develop coffee, tea, and other beverages including dairy and plant-based milks to support our customers’ innovation needs. The expansion of our extracts and RTD business in Conway is the gateway to future EBITDA expansion an...