Vintage Wine defers principal payment to June 17; amends swingline interest rate

By Mary-Katherine Stinson

Lexington, Ky., May 8 – Vintage Wine Estates, Inc. amended its forbearance agreement dated Feb. 28 to extend the forbearance period and defer the $10 million principal payment, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The first amendment extends the forbearance period to June 4 and further defers the $10 million mandatory prepayment of the term loan to June 17.

It also amends the interest rate for swingline borrowings to one-month adjusted term SOFR plus 80 basis points plus the applicable margin for adjusted base rate revolver loans.

In connection with the amendment, the company and the borrowers also agreed to pay certain fees, including a one-time payment of 5 bps on the consenting lenders' outstanding loans and commitments.

As previously reported, the original forbearance period was to end on March 31, which was also the date that the principal payment was due. On April 2, the company amended the forbearance agreement, deferring the principal payment to May 15.

The agreement pertains to the company’s second amended and restated loan and security agreement dated Dec. 19, 2022 with BMO Bank NA as administrative agent.

The agent and lenders have agreed to forbear from enforcing their rights and remedies in respect of certain events of default under the loan agreement through the forbearance period so long as no further event of default occurs and the company and borrowers comply with the terms.

As previously reported, the original agreement reduced revolving commitments by $20 million to $180 million but permitted continued borrowing; increased during the forbearance period the interest rate for revolving loans by 100 basis points; provided that during the forbearance period the borrowers will not maintain cash in excess of their projected needs, with any excess to be used to pay down revolving loans; required compliance with some specified milestones related to business planning; and required payment of certain fees, including a one-time payment of 7.5 bps to the agent for the benefit of the consenting lenders.

The family of wineries and wines is based in Incline Village, Nev.

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