Reed’s Inc. Announces Completion of Debt Refinancing
October 09 2018 - 8:00AM
Enhances Financial
Flexibility
Reed’s Inc. (NYSE American: REED), owner of the nation’s
leading portfolio of handcrafted, all-natural beverages, today
announced that it has successfully refinanced its outstanding
facilities. The refinancing, led by Rosenthal & Rosenthal,
strengthens the Company’s financial profile, significantly reducing
debt service and borrowing costs. The $13 million asset based loan
replaces its existing credit agreements with PMC. Based on current
interest rates, the Company's annual debt service will be reduced
by approximately $1.5 million.
Proceeds from the credit facility were used to
repay all existing PMC borrowing, totaling $8.8 million in
outstanding principal and accrued fees and expenses across Reed’s
working capital and equipment lease facilities. Following the
completion of the refinancing, the Company has approximately $9.1
million drawn on the new $13 million credit facility. This new
facility will mature on March 30, 2021.
“We are very pleased with the execution of this
refinancing as it is another significant milestone in the company’s
transformation,” stated Val Stalowir, CEO of Reed’s, Inc. “The
improved financial terms and reduced debt service will allow us the
flexibility to fund incremental investments in sales and marketing,
driving improved growth and financial performance as we embark upon
our next phase of growth.”
“We are excited to partner with Rosenthal &
Rosenthal and look forward to their flexible financing as the
company executes against its growth initiatives,” stated Iris
Snyder, CFO of Reed’s, Inc. “We remain focused on continuing to
improve financial performance while enhancing long-term value for
our shareholders.”
About Reed’s, Inc.:
Established in 1989, Reed’s has sold over 500
million bottles of its category leading natural, handcrafted
beverages. Reed’s is America’s #1 selling Ginger Beer brand and has
been the leader and innovator in the ginger beer category for
decades. Virgil’s is America’s #1 selling independent, full line of
natural craft sodas. The Reed’s Inc. portfolio is sold in over
30,000 retail doors across the natural, specialty, grocery, drug,
club and mass channels nationwide. Reed’s Ginger Beers are
unique to the category because of the proprietary process of hand
brewing its award-winning products using fresh organic ginger
combined with natural spices and fruit juices. Reed’s Ginger Beers
come in three levels of increasing ginger intensity that deliver a
delicious and powerful ginger bite and burn that only comes from
fresh ginger root. The Company uses this same handcrafted approach
and dedication to the highest quality ingredients in its
award-winning Virgil’s line of great tasting, bold flavored craft
sodas which are now available in new zero sugar, zero calorie
varieties.
For more information about Reed’s, please visit
the Company’s website at: http://www.reedsinc.com or call
800-99-REEDS.
Follow Reed’s on Twitter, Instagram, and
Facebook @drinkreeds
Visit Virgil’s website at:
http://www.virgils.com
Follow Virgil’s on Twitter and Instagram
@drinkvirgils
Visit Virgil’s Facebook Fan Page
@drinkvirgilssoda
About Rosenthal &
Rosenthal:
Rosenthal & Rosenthal (www.rosenthalinc.com) is the leading
independent factoring, asset based lending and purchase order
financing firm in the United States. Founded in 1938 by Imre J.
Rosenthal, the firm is now led by the second and third generations
of the Rosenthal family. As a privately held company, Rosenthal is
committed to providing personalized service and flexible lending to
clients across a broad range of industries. Rosenthal has offices
in New York, California, Georgia and North Carolina.
CONTACT:
Investor Relations
Scott Van Winkle, ICR
(310) 217-9400 Ext 6
Or (617) 956-6736
Email: ir@reedsinc.com
www.reedsinc.com
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