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

By Tali Rackner

Norfolk, Va., March 6 – Farmer Bros. Co. came out with details on its new $75 million five-year senior secured revolving credit facility that was issued to replace its existing facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $30 million sublimit for letters of credit and a $15 million sublimit for swingline loans.

Administrative agent JPMorgan Chase Bank, NA agreed to provide $45 million of the commitments, and syndication agent SunTrust Bank agreed to provide the other $30 million.

There is a $50 million accordion feature.

Interest is Libor plus 125 basis points to 200 bps, based on availability. The commitment fee ranges from 25 bps to 27.5 bps, based on usage.

As of March 2, Farmer had $20.7 million of outstanding borrowings, including $12 million to settle letters of credit that are being transitioned from the previous lender, used $11 million of the letters of credit sublimit and had $41.4 million of excess available under the revolver.

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.

The credit agreement expires on March 2, 2020.

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

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