Westrock Coffee upsizes credit agreement to $400 million

By William Gullotti

Buffalo, N.Y., Feb. 14 – Westrock Coffee Co., formerly Westrock Coffee Holdings LLC, entered into an amendment to its credit agreement with Wells Fargo Bank, NA as administrative agent, according to a press release on Tuesday.

The amendment established a new class of incremental term loan commitments in the form of a $50 million senior secured delayed draw term loan credit facility maturing Aug. 29, 2027.

As with the identical maturity date, the delayed draw term loan will be subject to the same terms and conditions as the initial $175 million senior secured first-lien term loan facility entered Aug. 29, 2022.

As previously reported, borrowings 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, as determined by the company’s 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.

As previously reported, the initial $350 million credit agreement also included a $175 million senior secured first-lien revolving credit facility which matures on the same date.

In addition to serving as administrative agent, Wells Fargo Bank is also the lead arranger, 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.

Westrock Coffee is a Concord, N.C.-based supplier of coffee, tea, flavors, extracts and ingredients products.

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