Farmer Brothers Amends Credit Agreement to Support Strategic Initiatives
March 11 2020 - 8:30AM
Farmer Bros. Co. (NASDAQ: FARM) (the "Company") today announced it
has amended its credit facility with JPMorgan Chase Bank, N.A to
increase the Company’s flexibility in funding future capital
improvements and execute on the strategic projects underpinning the
Company’s five key initiatives. The $125 million credit facility
has a maturity date in November 2023 and is subject to affirmative
and negative covenants customary in a senior secured lending
facility, including financial covenants relating to leverage and
interest expense coverage.
“We are pleased to unlock additional flexibility to fund our
strategic initiatives through this amendment,” said Deverl
Maserang, Farmer Brothers’ President and CEO. “We appreciate the
confidence of our lenders in our business and transformation
strategy. Our team remains focused on executing key initiatives
including the rebalancing of volume across our manufacturing
network, optimizing our supply chain, evolving our product
portfolio and enhancing our service capability. We are confident
that we are on the right path to return Farmer Brothers to a
position of strength for the long term.”
Additional details relating to the amendment will be available
in a Form 8-K that the Company will file with the U.S. Securities
and Exchange Commission.
About Farmer Bros. Co.
Founded in 1912, Farmer Bros. Co. is a national coffee roaster,
wholesaler and distributor of coffee, tea and culinary products.
The Company’s product lines include organic, Direct Trade and
sustainably-produced coffee. With a robust line of coffee, hot and
iced teas, cappuccino mixes, spices, and baking/biscuit mixes, the
Company delivers extensive beverage planning services and culinary
products to its U.S. based customers. The Company serves a wide
variety of customers, from small independent restaurants and
foodservice operators to large institutional buyers like restaurant
and convenience store chains, hotels, casinos, healthcare
facilities, and gourmet coffee houses, as well as grocery chains
with private brand coffee and consumer branded coffee and tea
products, and foodservice distributors.
Headquartered in Northlake, Texas, Farmer Bros. Co. generated
net sales of $595.9 million in fiscal 2019 and has approximately
1,470 employees nationwide. The Company’s primary brands include
Farmer Brothers®, Artisan Collection by Farmer Brothers™,
Superior®, Metropolitan™, China Mist® and Boyds®.
Forward-Looking Statements
Certain statements contained in this press release are not based
on historical fact and are forward-looking statements within the
meaning of federal securities laws and regulations. These
statements are based on management's current expectations,
assumptions, estimates and observations of future events and
include any statements that do not directly relate to any
historical or current fact. These forward-looking statements can be
identified by the use of words like “anticipates,” “estimates,”
“projects,” “expects,” “plans,” “believes,” “intends,” “will,”
“could,” “assumes” and other words of similar meaning. Owing to the
uncertainties inherent in forward-looking statements, actual
results could differ materially from those set forth in
forward-looking statements. The Company intends these
forward-looking statements to speak only at the time of this press
release and does not undertake to update or revise these statements
as more information becomes available except as required under
federal securities laws and the rules and regulations of the
Securities and Exchange Commission (“SEC”). Factors that could
cause actual results to differ materially from those in
forward-looking statements include, but are not limited to, the
success of our corporate relocation plan, the impact of capital
improvement projects, the adequacy and availability of capital
resources to fund our existing and planned business operations and
our capital expenditure requirements, the capacity to meet the
demands of the Company’s large national account customers, the
extent of execution of plans for the growth of Company business and
achievement of financial metrics related to those plans, the
success of the Company to retain and/or attract qualified
employees, the effect of the capital markets, stockholder activity
and fluctuations in availability and cost of green coffee,
competition, organizational changes, the effectiveness of our
hedging strategies in reducing price risk, changes in the strength
of the economy, business conditions in the coffee industry and food
industry in general, the Company's success in attracting new and
retaining existing customers, variances from budgeted sales mix and
growth rates, weather and special or unusual events, as well as
other risks described in this press release and other factors
described from time to time in the Company's filings with the
SEC.
Contact:
Joele Frank, Wilkinson Brimmer
Katcher
Leigh Parrish212-355-4449
Farmer Brothers (NASDAQ:FARM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Farmer Brothers (NASDAQ:FARM)
Historical Stock Chart
From Sep 2023 to Sep 2024