White Oak Commercial Finance (WOCF), an affiliate of White Oak Global Advisors, announced the closing of a $192 million senior secured credit facility for Royal Cup Coffee and Tea, a national provider of beverage and equipment solutions. The financing package includes a $155 million revolving credit facility and a $37 million term loan.
WOCF served as sole lead arranger and sole lender on the revolving credit facility, while Hilco Global acted as administrative agent on the term loan, with WOCF participating as a co-lender.
The financing enabled Royal Cup, a portfolio company of Braemont Capital, to acquire Farmer Brothers Coffee Co. and provides ongoing working capital support for the combined organization. The acquisition expands Royal Cup’s national footprint, enhances its manufacturing capabilities, increases route density, and strengthens its position across key commercial beverage markets.
Founded in 1896, Royal Cup Coffee and Tea manufactures and distributes coffee and tea products across the United States, Mexico, Canada, and the Caribbean. The company serves customers in the food service, hospitality, convenience, office, and specialty coffee sectors.
KEY QUOTES:
“We’re pleased to provide a flexible facility structure that supports Royal Cup’s vision of building a national platform.”
Mark Allen Smith, Managing Director, Originations, White Oak Commercial Finance
“This transaction represents an important milestone for Royal Cup as it expands its market presence and strengthens its operational capabilities through the acquisition of Farmer Brothers. The financing was structured to support the company’s continued growth while providing the flexibility needed to integrate the combined platform effectively.”
Andre Hakkak, CEO And Co-Founder, White Oak Global Advisors
“This transaction highlights the strength of the lending group and the continued demand for creative, scalable financing solutions in the lower middle market. Hilco Global is pleased to provide capital support that positions Royal Cup for long-term operational and strategic success.”
Ian Fredericks, CEO, Hilco Global Capital Solutions (Americas)
