J.P. Morgan Chase Bank amended the credit facility of Farmer Bros., allowing the company to increase flexibility in funding future capital improvements and execute on strategic projects. The $125 million credit facility has a maturity date in November 2023 and is subject to affirmative and negative covenants customary in a senior secured lending facility, including financial covenants relating to leverage and interest expense coverage.
“We are pleased to unlock additional flexibility to fund our strategic initiatives through this amendment,” Deverl Maserang, Farmer Brothers’ president and CEO, said. “We appreciate the confidence of our lenders in our business and transformation strategy. Our team remains focused on executing key initiatives including the rebalancing of volume across our manufacturing network, optimizing our supply chain, evolving our product portfolio and enhancing our service capability. We are confident that we are on the right path to return Farmer Brothers to a position of strength for the long term.”
Founded in 1912, Farmer Bros. is a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products.
