Coke Florida Secures New $350 Million Credit Facility with Potential for Additional Capacity
Coca-Cola Beverages Florida (Coke Florida) has secured a new $350 million senior unsecured revolving credit facility, replacing its previous agreement and providing additional financial flexibility for investments in operations and growth.
The five-year facility includes an accordion feature that could increase the total capacity to up to $550 million, subject to lender commitments and conditions. This means Coke Florida can access more funds if needed, giving it greater room to maneuver.
The interest rate on borrowings will be the Secured Overnight Financing Rate (SOFR) plus a spread ranging from 0.75% to 1.25%, depending on the company's leverage ratio. The new facility was oversubscribed and added a new bank to Coke Florida's lending syndicate, with Citibank serving as administrative agent.
Coke Florida plans to use the financing for investments in production facilities, distribution centers, its vehicle fleet, automation, and digital capabilities. According to CEO Troy Taylor, '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.'