Westrock Coffee Receives $75M Equity Investment; Product Launch & Equipment Delays Hurt Near-Term Guidance
Portfolio Pulse from Shivani Kumaresan
Westrock Coffee Company (NASDAQ:WEST) has received a $75 million equity investment from HF Capital LLC and the Herbert Hunt family. The investment will be made through the purchase of 7.5 million shares at $10 per share, a 10.3% discount to the company's closing price on June 29. The transactions are expected to close in August 2023. Westrock has also amended its $400 million credit agreement to increase its total net leverage financial covenant and raise the minimum interest coverage ratio. However, the company has cut its FY23 adjusted EBITDA outlook due to product launch delays and equipment delays.
June 30, 2023 | 2:34 pm
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Westrock Coffee has received a $75 million equity investment and amended its credit agreement, which could provide financial stability. However, the company has cut its FY23 EBITDA outlook due to product and equipment delays, which could negatively impact its performance.
The equity investment and amended credit agreement could provide financial stability for Westrock Coffee. However, the cut in the FY23 EBITDA outlook due to product and equipment delays could negatively impact the company's performance, potentially leading to a decrease in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100