Organic and natural beverage company New Age Beverages secured a new $12 million line of credit with Siena Lending Group.

The new line of credit is in an asset-backed loan and will provide working capital to invest in inventory to meet demands from its recently expanded distribution. The ABL is for a period of three years, and provides working capital for the company on up to 85% of accounts receivable and 60% of inventory, with loaned amounts incurring an annualized interest rate of a base rate plus 2.75%, but not less than 7.5%.

Siena Lending Group structured the asset-based loan after months of work and due diligence with New Age. The transaction was facilitated with the support of the investment banking group at Alliance Global Partners.

“Although the new credit facility took an inordinate amount of time to secure, we are very pleased with the terms of the facility and the quality of the lending partner in Siena. We evaluated numerous commercial banks and traditional asset-based lending institutions to secure the ABL and we’re just not going to compromise on terms, quality and flexibility,” said Chuck Ence, CFO of New Age Beverages.

New Age Beverages is a Colorado-based healthy functional beverage company that was created in 2016 and 2017 with the combination of Búcha Live Kombucha, XingTea, Coco-Libre and Marley to create a one-stop-shop solution for retailers and distributors providing healthier beverages.