Westrock Coffee gets $350 million five-year revolver, term loan

By Mary-Katherine Stinson

Lexington, Ky., Aug. 30 – Westrock Coffee Holdings LLC and Westrock Beverage Solutions, LLC, as the borrower, entered into a credit agreement on Aug. 29 providing for a senior secured first-lien revolving credit facility for $175 million and a senior secured first-lien term loan facility for $175 million, according to an 8-K filing with the Securities and Exchange Commission.

Both facilities mature on August 29, 2027.

Borrowings under the facilities will bear interest at SOFR plus a credit spread adjustment of 10 basis points to 25 bps and then a margin. The margin will be between 150 bps and 250 bps.

Commitment fees on the revolver range from 20 bps to 35 bps depending on the total net leverage ratio.

The agreement contains two financial covenants requiring maintenance of a total net leverage ratio not to exceed 4.5x, with a stepdown to 4x on the 18-month anniversary of the closing date and an interest coverage ratio of at least 1.5x.

Wells Fargo Bank, NA is the as administrative agent, lead arranger and bookrunner, collateral agent and swingline lender.

Wells Fargo Securities, LLC is the sustainability structuring agent.

BofA Securities, Inc. is the syndication agent.

Bank of America, NA, Cooperatieve Rabobank UA, New York Branch, Sumitomo Mitsui Banking Corp., Truist Bank, First Security Bank, First Horizon Bank, Pinnacle Bank and Stifel Bank & Trust are the lenders.

Proceeds will be used to refinance the company’s existing debt, for working capital and for general corporate purposes.

Also on Aug. 26 Westrock completed its previously announced business combination with Riverview Acquisition Corp. As previously reported, the transaction valued Westrock Coffee at an enterprise value of about $1.086 billion at $10 per share and, assuming no redemptions by Riverview shareholders, was expected to deliver around $500 million in gross cash proceeds to the combined company, including $250 million in common stock PIPE commitments.

Westrock Coffee is a Concord, N.C.-based supplier of coffee, tea, flavors, extracts and ingredients products. Riverview is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

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