Westrock Coffee closed an upsized refinancing for its Beverage Solutions segment through a new credit agreement led by Coöperatieve Rabobank U.A., New York Branch. The agreement provides a $300 million senior secured first lien term loan and a $300 million senior secured first lien revolving credit facility, for a total commitment of $600 million, up from $425 million under the prior credit agreement. The five-year facilities mature in October 2031.
Rabobank fully funded the transaction and is syndicating it to the broader lender group. The syndication was oversubscribed, with Rabobank receiving $737 million of lender commitments, which allowed the facilities to be upsized from $500 million at launch to $600 million.
Proceeds were used to repay debt under the prior credit agreement and will also be used to fund related transaction costs, including cash payments in connection with the transactions involving the company’s 5% convertible senior notes due 2029, and for general corporate purposes.
With the new facilities, Westrock Coffee has liquidity of approximately $270 million, consisting of $40 million in unrestricted cash and $230 million in undrawn revolver commitments. Scheduled term loan amortization was reduced from 10.0% under the prior facility to 2.5% in Year 1 and 5.0% in Years 2-4, lowering required principal payments by approximately $15 million over the next four quarters compared with the prior facility, which allows the company to retain more cash in the business.
As part of the refinancing, the company also announced the repurchase of $40 million of its 2029 notes for approximately $21 million in cash and approximately 2.4 million shares of its common stock. It also announced amendments to its remaining $32 million of 2029 notes that, among other things, extended their maturity to January 2032 and gave the company the ability to optionally redeem the notes if its shares trade at or above $14.25 for more than 120 consecutive trading days.
“This refinancing is a vote of confidence in Westrock Coffee’s platform and our long-term strategy. With a strong group of lenders led by Rabobank, these new credit facilities let us stay focused on what matters most: scaling our extract and ready-to-drink capabilities and delivering for the world’s leading beverage brands,” Scott T. Ford, co-founder and CEO of Westrock Coffee, said.
“This refinancing marks an important milestone as we move beyond the Conway build-out. The new facilities provide approximately $270 million of liquidity and lower scheduled amortization, allowing us to retain more cash in the business as we continue to reduce leverage. We are grateful to Rabobank and our lender group, whose $737 million of commitments exceeded the $600 million size of the facilities,” Chris Pledger, chief financial officer of Westrock Coffee, added.
Rabobank served as lead arranger and lead bookrunner, as well as administrative agent and collateral agent, under the credit agreement. In connection with the syndication, Truist Securities, Inc. and Bank of America, N.A. will serve as joint lead arrangers and joint bookrunners; TD Securities (USA), LLC and The Huntington National Bank will serve as co-documentation agents; and Texas Capital Bank and Goldman Sachs Bank USA will serve as joint syndication agents.
Goldman Sachs & Co. LLC acted as exclusive structuring agent to Westrock Coffee on the refinancing and convertible notes transactions, and Wachtell, Lipton, Rosen & Katz served as legal counsel to Westrock Coffee. Reed Smith LLP served as legal counsel to Rabobank.
Westrock Coffee will report its third quarter 2026 financial results on Nov. 5, after market close, followed by its quarterly earnings conference call at 4:30 p.m. Eastern.
Additional information regarding the credit agreement and the convertible note transactions will be included in a Form 8-K to be filed with the Securities and Exchange Commission.
