Daily News: August 31, 2017

JPMorgan Chase Agents $50MM Farmer Bros. Upsize


Farmer Bros. Co. and China Mist Brands, as well as the company’s wholly owned subsidiaries, entered into a first amendment to credit agreement and first amendment to its pledge and security agreement with JPMorgan Chase Bank as administrative agent.

According to a related 8-K filing, the amendment increased the aggregate commitments of the company’s senior secured revolving credit facility from $75 million to $125 million, and included an accordion feature allowing for an increase of up to $50 million. Interest rates remained otherwise unchanged.

The amended credit agreement also increased the advance rate on the eligible accounts receivable that are with investment grade customers from 85% to 90% and the amount of the borrowers’ eligible real property which can be included in the borrowing base from the lesser of $25 million and 75% of the fair market value of such eligible real property, to the lesser of $60 million and 75% of the fair market value of such eligible real property.

The amended agreement extended the maturity date of the revolving facility from March 2, 2020 to August 25, 2022.