Farmer Bros. Co. (Nasdaq:FARM) (the "Company") today announced that
it has entered into a new five-year $75 million senior secured
revolving credit facility ("Revolving Facility") led by JPMorgan
Chase Bank, N.A. ("Chase"), as Administrative Agent, and SunTrust
Bank ("SunTrust"), as Syndication Agent, to replace the Company's
existing $75 million credit facility with Wells Fargo Bank, N.A.
that expired on March 2, 2015. The Revolving Facility includes an
additional $50 million accordion feature subject to approval by
applicable lenders.
The Company intends to use the proceeds of the Revolving
Facility to refinance certain existing indebtedness, to finance the
Company's working capital needs, and to finance certain expenses
and other capital expenditures related to the Company's corporate
relocation plan announced on February 5, 2015. Combined with the
Company's cash flows from operations and other liquid assets, the
borrowing capacity provided by the Revolving Facility is expected
to be sufficient to fund the Company's existing working capital
needs as well as growth.
"We are encouraged by the strong support from Chase and SunTrust
in establishing this new credit facility, and look forward to
building a productive relationship," said the Company's Treasurer
and CFO Mark Nelson. "We are very pleased with the terms of this
new revolver, and believe that this financing will provide for the
requirements of our upcoming corporate relocation, while also
serving as a resource for our future growth initiatives."
About Farmer Bros. Co.
Founded in 1912, Farmer Bros. Co. is a manufacturer, wholesaler
and distributor of coffee, tea and culinary products. The Company
is a direct distributor of coffee to restaurants, hotels, casinos,
offices, quick service restaurants ("QSR's"), convenience stores,
healthcare facilities and other foodservice providers, as well as
private brand retailers in the QSR, grocery, drugstore, restaurant,
convenience store, and independent coffee house channels. The
Company's product line includes roasted coffee, liquid coffee,
coffee-related products such as coffee filters, sugar and creamers,
assorted iced and hot teas, cappuccino, cocoa, spices, gelatins and
puddings, soup bases, dressings, gravy and sauce mixes, pancake and
biscuit mixes, and jellies and preserves.
Headquartered in Torrance, Calif., Farmer Bros. Co. generated
net sales of over $500 million in fiscal 2014 and has approximately
1,800 employees nationwide. The Company's primary brands include
Farmer Brothers™, Artisan Collection by Farmer Brothers™,
Superior®, Metropolitan™ , Cain's™ and McGarvey®. For more
information, visit: www.farmerbros.com.
About Chase
Chase is the U.S. consumer and commercial banking business of
JPMorgan Chase & Co. (NYSE:JPM), a leading global financial
services firm with assets of $2.6 trillion and operations
worldwide. The firm is a leader in investment banking, financial
services for consumers and small businesses, commercial banking,
financial transaction processing, asset management and private
equity. A component of the Dow Jones Industrial Average, JPMorgan
Chase & Co. serves millions of consumers in the United States
and many of the world's most prominent corporate, institutional and
government clients under its J.P. Morgan and Chase brands.
Information about JPMorgan Chase & Co. is available at
www.jpmorganchase.com.
About SunTrust
SunTrust Banks, Inc., headquartered in Atlanta, is one of the
nation's largest banking organizations, serving a broad range of
consumer, commercial, corporate and institutional clients. As of
December 31, 2014, SunTrust had total assets of $190.3 billion and
total deposits of $140.6 billion. Through its flagship subsidiary,
SunTrust Bank, the Company operates an extensive branch and ATM
network throughout the high-growth Southeast and Mid-Atlantic
States and a full array of technology-based, 24-hour delivery
channels. The company also serves clients in selected markets
nationally. Its primary businesses include deposit, credit, trust
and investment services. Through its various subsidiaries, the
company provides mortgage banking, asset management, securities
brokerage, and capital market services. SunTrust's Internet address
is www.suntrust.com.
Forward-Looking Statements
Certain statements contained in this press release, including
the expected adequacy and availability of the new Revolving
Facility, 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
timing and success of implementation of the corporate relocation
plan, the relative effectiveness of compensation-based employee
incentives in causing improvements in Company performance, 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 as well as
other external factors on stockholder value, fluctuations in
availability and cost of green coffee, competition, organizational
changes, changes in the strength of the economy, business
conditions in the coffee industry and food industry in general, the
Company's continued success in attracting new customers, variances
from budgeted sales mix and growth rates, weather and special or
unusual events, changes in the quality or dividend stream of the
third parties' securities and other investment vehicles in which
the Company has invested its assets, 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: Mark Nelson (310) 787-5241
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