Suja Life Lowers Interest Expense via Refinanced Credit Deal
Suja Life, the parent company of Suja Organic, Vive Organic, and Slice Soda, has renegotiated its credit agreement with JPMorgan Chase Bank. The new agreement amends and restates the original deal from August 23, 2021. This refinancing aims to reduce Suja Life's cost of capital by introducing more favorable interest rates.
The applicable interest rate will now be based on the Term SOFR Rate plus 1.75%, 2.00%, or 2.25% per annum, depending on the company's consolidated net leverage ratio. According to Jeff Pedersen, Suja Life's chief financial officer, this refinancing reflects a shift in lender confidence due to the company's improved cash flow generation.
Suja Life expects its total interest expense for 2026 to decrease to $18 million as a result of this refinancing. The company is not taking on any additional debt but will benefit from reduced borrowing costs, which should improve its available cash flow.