Westrock Coffee Closes Refinancing With Nearly $270 Million in Liquidity
Key Facts
Westrock Coffee announced the closing of a refinancing for its Beverage Solutions segment, with liquidity at closing of about $270 million, according to a company statement. The transaction covers senior secured first-lien credit facilities financing the segment, which includes extracts and ready-to-drink operations. The reported liquidity comprised about $40 million in unrestricted cash and funding commitments available under the revolving credit facility. Undrawn commitments under that facility totaled $230 million at closing, according to figures in Westrock's statement. Liquidity at closing thus combines unrestricted cash and unused borrowing capacity under the revolver.
Westrock said Rabobank received $737 million in lender commitments during the financing process, exceeding the size of the facilities offered. The company launched the transaction with a target size of $500 million before increasing it in response to excess lender demand. Chief Executive Scott Ford linked the financing to expanding the company's operating capabilities in the businesses he cited in his statement on the deal. Ford said the transaction supports "expanding our extracts and ready-to-drink capabilities," identifying the areas of expansion served by the financing. The facilities were increased during the arrangement process after lender commitments exceeded the amount the company targeted at launch, according to the statement.
Alongside the refinancing, Westrock repurchased a portion of its convertible notes using a combination of cash and common shares. The company paid about $21 million in cash as part of the repurchase consideration, according to transaction details announced in its statement. It also issued about 2.4 million common shares as the other component of the consideration provided to holders of the notes included in the repurchase. The note arrangements also included extending the maturity of the remaining portion to January 2032, according to the company, alongside the repurchase of the other portion. The note repurchase therefore involved a cash payment and share issuance, while the notes that remained outstanding were subject to a separate maturity arrangement.
The transaction follows an earlier amendment to financing agreements that Westrock completed in June 2026, extending the maturities of existing loans and commitments. The loans and commitments covered by that amendment totaled about $361 million, according to a company statement filed with the U.S. Securities and Exchange Commission. Those loans and commitments were due to mature in August 2027 before the company moved their maturity to November 2028 under the amendment. The earlier financing amendment also included ending the covenant relief period ahead of schedule, a step the company said reduced its borrowing spread. Westrock described the effect of that step in its statement as "reduces our borrowing costs," alongside extending the maturities of the loans and commitments covered by the amendment.
On financial performance, Westrock reported consolidated net sales of $305.7 million in the second quarter of 2026, according to its earnings release. Sales rose 8.8% from a year earlier, while the results showed a narrower quarterly net loss. The net loss totaled $13.7 million, compared with a loss of $21.6 million in the second quarter of 2025, according to the comparison released by Westrock. Consolidated adjusted earnings before interest, taxes, depreciation and amortization totaled $21.3 million in the second quarter of 2026. That adjusted measure rose 38.9% year on year, alongside higher sales and a lower net loss in the same period.
Westrock's capital expenditure totaled $6.5 million in the second quarter of 2026, according to the earnings release that included sales, loss and adjusted earnings figures. The next financial disclosure scheduled by the company covers third-quarter 2026 results, following the quarter for which it previously reported figures. Westrock said in its earnings date announcement that it would release those results on Thursday, November 5, 2026, after the market closes. The results release will be followed by a live earnings conference call, according to arrangements published by the company for presenting its third-quarter financial performance. Westrock scheduled the call for 4:30 p.m. U.S. Eastern Time on the same day as the results release.