Vintage Wine Estates Announces Amended Credit Agreement; Terms And Covenants Support Execution Of 5-Point Plan And Transition FY24; Expected To Provide Sufficient Liquidity To Support Fiscal 2024 Plans As Company Advances To Positive Cash Generation
Portfolio Pulse from Benzinga Newsdesk
Vintage Wine Estates, Inc. (NASDAQ:VWE) has amended its credit agreement, waiving existing defaults, redefining financial covenants, and allowing for additional asset sales. The company had approximately $305 million in outstanding borrowings and total liquidity of approximately $73 million. The amended agreement reduces the aggregate revolving commitment and the aggregate delayed draw term loan commitment to $200 million and $38.1 million respectively, and requires term loan prepayments of $45 million by December 31, 2024.
October 13, 2023 | 8:15 pm
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Vintage Wine Estates' amended credit agreement provides financial flexibility, which could support the company's Five-Point Plan and transition to positive cash generation. However, the company is required to make significant term loan prepayments by the end of 2024.
The amended credit agreement provides Vintage Wine Estates with financial flexibility, which could support its operational plans. However, the requirement for significant term loan prepayments by the end of 2024 could put pressure on the company's liquidity. The impact on the stock price is uncertain, as the benefits of financial flexibility could be offset by the potential liquidity pressure.
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