Reed’s, owner of the nation’s leading portfolio of handcrafted, all-natural beverages, has successfully refinanced its outstanding facilities led by Rosenthal & Rosenthal.
The $13 million asset-based loan replaces its existing credit agreements with PMC. Based on current interest rates, the company’s annual debt service will be reduced by approximately $1.5 million.
Proceeds from the credit facility were used to repay all existing PMC borrowing, totaling $8.8 million in outstanding principal and accrued fees and expenses across Reed’s working capital and equipment lease facilities. Following the completion of the refinancing, the company has approximately $9.1 million drawn on the new $13 million credit facility. This new facility will mature on March 30, 2021.
“We are very pleased with the execution of this refinancing as it is another significant milestone in the company’s transformation,” said Reed’s CEO Val Stalowir. “The improved financial terms and reduced debt service will allow us the flexibility to fund incremental investments in sales and marketing, driving improved growth and financial performance as we embark upon our next phase of growth.”
Established in 1989, Reed’s has sold more than 500 million bottles of its category leading natural, handcrafted beverages.
