Coca-Cola Beverages Florida has renewed its $350 million senior unsecured revolving credit facility to support investments in its operations and future growth.
The new five-year facility replaces the company’s previous $350 million credit agreement and includes a $200 million accordion feature.
The accordion provision could allow Coke Florida to increase the facility’s total capacity to as much as $550 million, subject to lender commitments and the agreement’s conditions.
Borrowings will carry interest at the Secured Overnight Financing Rate plus a spread ranging from 0.75% to 1.25%, depending on Coke Florida’s leverage ratio.
The facility was oversubscribed and added a new bank to the company’s lending syndicate.
Coke Florida plans to use the additional financial flexibility for investments in production and distribution facilities, its vehicle fleet, automation and digital capabilities.
The company said the financing will also help ensure it has sufficient liquidity to serve customers, create opportunities for employees and support long-term value creation.
Citibank, PNC Capital Markets and BofA Securities served as joint lead arrangers and joint bookrunners.
Citibank will serve as administrative agent. PNC Bank and Bank of America will act as co-syndication agents and co-documentation agents.
BMO Bank, Huntington National Bank and Northern Trust also participated in the facility.
Coke Florida has a BBB+ credit rating.
Founded in 2015 and headquartered in Tampa, the company is a strategic bottling partner of The Coca-Cola Company.
Its exclusive operating territory covers 47 counties in Florida.
Coke Florida manufactures, sells and distributes sparkling soft drinks, water, tea, sports drinks, energy drinks, juices and value-added dairy beverages.
The company employs more than 5,000 people and operates four production facilities and 18 distribution centers.
It is also one of the largest Black-owned businesses in the United States.
KEY QUOTES:
“This new credit facility strengthens Coke Florida’s financial position and provides additional flexibility to invest strategically in the continued growth and improvement of our business.”
“The additional capacity will support investments in our facilities, fleet, automation and digital capabilities, while ensuring we have the resources to serve our customers, create opportunities for our associates and continue building a stronger business for the future.”
Troy Taylor, CEO of Coca-Cola Beverages Florida
“Renewing our five-year, $350 million revolving credit facility highlights Coke Florida’s strong financial position and the confidence our banking partners have in our long-term strategy.”
“The oversubscribed facility brought a new banking partner into our syndicate and, together with our BBB+ credit rating, provides the liquidity and flexibility to fund strategic investments and create long-term value for Coke Florida.”
Paul Pheffer, CFO of Coca-Cola Beverages Florida
