Coffee Service

Westrock Coffee secures $75M in investment funding

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June 30, 2023

Westrock Coffee Co., a coffee provider to the retail, foodservice, convenience store, travel center and hospitality industries, has entered into definitive agreements with affiliates of HF Capital, LLC and the Herbert Hunt family to make aggregate equity investments of $75 million in the company through the purchase of 7.5 million shares of company common stock at a price of $10 per share, according to a press release.

The company also announced it has amended its existing $400 million credit agreement to increase its total net leverage financial covenant for a period of time not to exceed April 1, 2025, and to raise the minimum interest coverage ratio from 1.5 times to 2 times.

"Together, the equity investments and credit agreement amendment form part of a capital plan that allows us to not only complete the previously announced phase 1 and 2 expansions, which consist of high-speed can and glass bottle lines, a multi-serve bottle line and bag-in-box and bulk lines, but now, two additional can lines and an industry leading product development lab and FDA-certified pilot plant to develop coffee, tea and other beverages, including dairy and plant-based milks, to support our customers' innovation needs," Scott Ford, co-founder and CEO, said in the press release.