NewAge, a direct selling company with a primary focus on healthy products, entered into a $12 million revolving line of credit agreement with East West Bank.
NewAge used the facility, which matures in March 2024, to repay in full its existing outstanding loan balance of $10.6 million under its 8% senior secured note with JGB Management. NewAge will use the remaining availability on the new facility for general working capital purposes. The new line of credit bears interest at the primate rate plus 1.75% and is interest-only until March 2024.
“This new credit facility with East West Bank successfully retires the $30 million senior secured debt used to fund a portion of the ARIIX acquisition and enhances our liquidity profile,” Ed Brennan, chairman and interim CEO of NewAge, said.
