Farmer Bros. amends $90 million revolver, $47 million term loan

Chicago, Aug. 31 – Farmer Bros. Co. amended its credit agreement with Wells Fargo Bank, NA on Aug. 31, according to an 8-K filing with the Securities and Exchange Commission.

The amendment relates to the company’s credit agreement from April 26, 2021 for the company’s revolver.

With the Aug. 31 amendment, there is now a new $47 million term loan.

Additionally, the maturity date has been extended for the credit agreement to April 26, 2027 from April 25, 2025, provided that if the revolver is extended before April 1, 2027 to a date that is after April 26, 2027, then the maturity date for the term loan will be Aug. 31, 2037.

The amendment releases liens for various real properties that were securing the credit agreement.

Interest is at SOFR plus 175 bps for any revolving loan and SOFR plus 225 bps for any term loan.

The unused line fee is between 37.5 basis points and 50 bps.

Proceeds of the new term loan were used to repay outstanding term loans and other obligations from the 2021 credit agreement.

With the repayment, the company is no longer subject to the minimum EBITDA covenants.

Wells Fargo’s commitments are listed as $90 million in revolving commitments and $47 million in term loan commitments.

Farmer Bros. is a Northlake, Tex.-based direct distributor of coffee, tea and culinary products.

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