Farmer Bros. enters into $75 million five-year senior secured revolver

By Tali Rackner

Norfolk, Va., March 5 – Farmer Bros. Co. entered into a $75 million five-year senior secured revolving credit facility to replace its existing facility, according to a news release.

There is a $50 million accordion feature.

JPMorgan Chase Bank, NA is the administrative agent, and SunTrust Bank is the syndication agent.

Proceeds will be used to refinance certain existing debt, to finance the company's working capital needs and to finance certain expenses and other capital expenditures related to its corporate relocation plan announced on Feb. 5.

Combined with Farmer’s cash flows from operations and other liquid assets, the borrowing capacity provided by the revolver is expected to be sufficient to fund the company's existing working capital needs as well as growth, the release said.

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

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