Vintage Wine Estates Announces Amended Credit Agreement
14 10월 2023 - 5:14AM
Business Wire
- Terms and covenants support execution of Five-Point Plan and
transition year fiscal 2024
- Expected to provide sufficient liquidity to support fiscal 2024
plans as Company advances to positive cash generation from
operations
Vintage Wine Estates, Inc. (Nasdaq: VWE and VWEWW) (“VWE” or the
“Company”), one of the top wine producers in the U.S. with an
industry leading direct-to-consumer platform, today announced it
has amended its credit agreement (the “Amended Credit Agreement”)
to, among other things, waive existing events of default, redefine
financial covenants and allow for additional asset sales.
Kristina L. Johnston, Chief Financial Officer of VWE, commented,
“We are pleased our lenders have worked with us to execute a credit
agreement that we believe provides us financial and operational
flexibility to continue to execute on our Five-Point Plan. We are
becoming a more efficient and productive wine company with stronger
cash generation from operations. We are simplifying the business,
improving inventory management and quality while focusing sales and
marketing on our key brands. We also look forward to advancing our
strategy under new leadership with Seth Kaufman assuming the role
of CEO on October 30, 2023.” As of closing, the Company had
approximately $305 million in outstanding borrowings under the
Amended Credit Agreement and approximate total liquidity of
approximately $73 million including approximately $18 million of
cash.
In exchange for the waiver of defaults and financial covenant
modifications, the Amended Credit Agreement, among other things,
reduces the aggregate revolving commitment and the aggregate
delayed draw term loan commitment to $200 million and $38.1 million
respectively, requires term loan prepayments of $10 million by
March 31, 2024, an additional $10 million by June 30, 2024 and an
additional $25 million by December 31, 2024. In addition, the
Company will be required to make prepayments with any cash on hand
in excess of $20 million and suspends the exercise of any
incremental facilities through December 31, 2024. The rates under
the Amended Credit Agreement are initially SOFR plus 3%. The
Company has filed a Form 8-K with additional details regarding the
Amended Credit Agreement and its revised terms.
BMO Bank N.A. acts as administrative agent under the Amended
Credit Agreement.
About Vintage Wine Estates, Inc.
Vintage Wine Estates is a family of wineries and wines whose
singular focus is producing the best quality wines and incredible
customer experiences with wineries throughout Napa, Sonoma,
California’s Central Coast, Oregon, and Washington State. Since its
founding 20 years ago, the Company has grown to be the 14th largest
wine producer in the U.S., selling more than 2.2 million nine-liter
equivalent cases annually. With approximately
40 brands, key focus brands include ACE Cider, Bar Dog, B.R.
Cohn, Cameron Hughes, Cherry Pie, Firesteed, and Kunde, many of
which have achieved critical acclaim. To consistently drive growth,
the Company curates, creates, stewards, and markets its many brands
and services to customers and end consumers via a balanced
omni-channel strategy encompassing direct-to-consumer, wholesale,
and private label and custom wine making services. While VWE is
diverse across price points and varietals with brands ranging from
$10 to $150 USD at retail, its primary focus is on the fastest
growing luxury segment of the U.S. wine industry with the majority
of brands selling in the range of $10 to $20 per bottle. The
Company regularly posts updates and additional information at
ir.vintagewineestates.com.
Forward-Looking Statements
Some of the statements contained in this press release are
forward-looking statements within the meaning of applicable
securities laws (collectively, “forward-looking statements”).
Forward-looking statements are all statements other than those of
historical fact, and generally may be identified by the use of
words such as “continue,” “intend,” “plan,” “becoming,”
“simplifying,” “improving,” “focusing,” “advancing,” “requires,”
“provides,” or other similar expressions that indicate future
events or trends. These forward-looking statements include, but are
not limited to, statements regarding the anticipated benefits of
the Amended Credit Agreement, expected results from the
implementation of the Company’s Five-Point Plan; and the expected
timing and results of Seth Kaufman’s start as President and CEO.
These statements are based on various assumptions, whether or not
identified in this news release, and on the current expectations of
VWE’s management. These forward-looking statements are not intended
to serve as, and should not be relied on by any investor as, a
guarantee of actual performance or an assurance or definitive
statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and may differ materially
from those contained in or implied by such forward-looking
statements. These forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond the
control of VWE. Factors that could cause actual results to differ
materially from the results expressed or implied by such
forward-looking statements include, among others: risk that the
Amended Credit Agreement does not provide the anticipated financial
and operational flexibility, if at all; risks that the Company is
unable to meet the additional restrictions and obligations imposed
by the Amended Credit Agreement; the Company’s ability to recognize
benefits from any organization restructuring and other cost savings
actions, including expected results from the implementation of the
Company’s Five-Point Plan and positive cash generation; the risk
that Seth Kaufman does not start as President and CEO in the
expected the time frame, or at all; the Company’s ability to regain
compliance with the Nasdaq Listing Standards and maintain the
listing of its securities on Nasdaq; risks related to ongoing legal
proceedings; the Company’s limited experience operating as a public
company and its ability to remediate its material weakness in
internal control over financial reporting and to maintain effective
internal control over financial reporting; the ability of the
Company to retain key personnel; the effect of economic conditions
on the industries and markets in which VWE operates, including
financial market conditions, rising inflation, fluctuations in
prices, interest rates and market demand; risks relating to the
uncertainty of projected financial information; the effects of
competition on VWE’s future business; risks related to the organic
and inorganic growth of VWE’s business and the timing of expected
business milestones; the potential adverse effects of the ongoing
COVID-19 pandemic on VWE’s business and the U.S. economy; declines
or unanticipated changes in consumer demand for VWE’s products;
VWE’s ability to adequately source grapes and other raw materials
and any increase in the cost of such materials; the impact of
environmental catastrophe, natural disasters, disease, pests,
weather conditions and inadequate water supply on VWE’s business;
VWE’s level of insurance against catastrophic events and losses;
VWE’s significant reliance on its distribution channels, including
independent distributors; potential reputational harm to VWE’s
brands from internal and external sources; possible decreases in
VWE’s wine quality ratings; integration risks associated with
recent acquisitions; possible litigation relating to misuse or
abuse of alcohol; changes in applicable laws and regulations and
the significant expense to VWE of operating in a highly regulated
industry; VWE’s ability to maintain necessary licenses; VWE’s
ability to protect its trademarks and other intellectual property
rights; risks associated with the Company’s information technology
and ability to maintain and protect personal information; VWE’s
ability to make payments on its indebtedness; and those factors
discussed in the Company’s most recent Annual Report on Form 10-K
and in subsequent Quarterly Reports on Form 10-Q or other reports
filed with the Securities and Exchange Commission. There may be
additional risks including other adjustments that VWE does not
presently know or that VWE currently believes are immaterial that
could also cause actual results to differ from those expressed in
or implied by these forward-looking statements. In addition,
forward-looking statements reflect VWE’s expectations, plans or
forecasts of future events and views as of the date and time of
this news release. VWE undertakes no obligation to update or revise
any forward-looking statements contained herein, except as may be
required by law. Accordingly, undue reliance should not be placed
upon these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20231013639615/en/
Investors Deborah K. Pawlowski Kei Advisors LLC
dpawlowski@keiadvisors.com Phone: 716.843.3908
Media Mary Ann Vangrin
mvangrin@vintagewineestates.com
Vintage Wine Estates (NASDAQ:VWEWW)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Vintage Wine Estates (NASDAQ:VWEWW)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024