Vintage Wine Estates picks up $156.5 million term loan facility

By Wendy Van Sickle

Columbus, Ohio, Dec. 19 – Vintage Wine Estates, Inc. entered into a second amended and restated loan and security agreement on Dec. 13 with Bank of the West as administrative agent that provides a new real estate backed term loan facility of $156.5 million, according to an 8-K filed with the Securities and Exchange Commission.

Proceeds of the $154.6 million drawn at closing were used to pay down outstanding existing credit facilities, such that, following the effectiveness of the agreement: $1.91 million remains available to be drawn through June 30, 2023; an accounts receivable and inventory revolver in the principal amount of $229.7 million has $124.8 million drawn; a $4.2 million equipment loan is fully drawn; a $15.2 million capital expenditure facility is fully drawn; and a $52.9 million delayed-draw term loan facility has $30.6 million drawn, with remaining amounts available to be drawn through Dec. 13, 2023.

The term loan matures on Dec. 13, 2027, and the second amended and restated loan and security agreement extends the maturities of the other credit facilities as follows: the revolver matures on Dec. 13, 2027; the equipment loan matures on Dec. 31, 2026, the capital expenditure facility matures on June 30, 2027 and the delayed-draw term loan matures on Dec. 13, 2027.

Borrowings bear interest at term SOFR+ CSA plus 225 basis points for the credit facilities other than the revolver. For the revolver, pricing is based on a grid depending on average availability with the initial applicable margin being 200 bps.

Unused commitments have a fee of 25 bps for the delayed-draw term loan or, for the revolver, 20 bps initially, which can vary based on a grid that is based on average availability.

A maximum debt to capitalization ratio covenant is initially set at 0.60:1.00 and steps down to 0.575:1.00 and 0.55:1.00 with the quarters ending March 31, 2024 and Dec. 31, 2024.

The family of wineries and wines is based in Incline Village, Nev.

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