New Age Beverages Corporation Announces Closing of New $12 Million Line Of Credit
DENVER, CO / ACCESSWIRE / August 13, 2018 / NEW AGE BEVERAGES CORP. (NASDAQ: NBEV), the Colorado-based organic and natural beverage company intending to become the world’s leading healthy beverage company, today announced that it has secured a new line of credit of $12 million with Siena Lending Group.
KEY HIGHLIGHTS:$12 million line of credit provides the working capital to purchase inventory and continue to meet the needs of New Age’s expanded distribution and customer base Long-term financing and banking partner with new permanent financial facility provides for working capital, eliminates temporary bridge finance note, and consolidates total New Age debt of $4.7 million with one banking group
The new $12 million line of credit is in an asset-backed loan (ABL) and provides the working capital for New Age to invest in inventory to meet demands from its recently expanded distribution. The ABL is for a period of 3 years, and provides working capital for the Company on up to 85% of accounts receivable and 60% of inventory, with loaned amounts incurring an annualized interest rate of a base rate plus 2.75%, but not less than 7.5%.
Siena Lending Group is a leading independent asset-based lender serving middle-market companies and structured the asset based loan after months of work and due diligence with New Age. The transaction was facilitated with the support of the investment banking group at Alliance Global Partners/A.G.P.
Chuck Ence, CFO of New Age Beverages commented, ″Although the new credit facility took an inordinate amount of time to secure, we are very pleased with the terms of the facility and the quality of the lending partner in Siena. We evaluated numerous commercial banks and traditional asset-based lending institutions to secure the ABL and we’re just not going to compromise on terms, quality and flexibility, even though it took significantly longer than anticipated to complete. Siena provides all those aspects to us in their new facility that provides the working capital and flexibility for New Age to continue to deliver superior organic growth.″
About New Age Beverages Corporation (NASDAQ: NBEV )
New Age Beverages Corporation is a Colorado-based healthy functional beverage company that was created in 2016 and 2017 with the combination of Búcha Live Kombucha®, XingTea®, Coco-Libre®, and Marley®, to create a one-stop-shop solution for retailers and distributors providing healthier beverages in the disruptive growth segments of the $1 Trillion-dollar non-alcoholic beverage industry. In that period, New Age has become the 56th largest beverage company, one of the largest healthy beverage companies, and the fastest growing in the world over the past two years. New Age competes Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks, Coconut Waters, Functional Waters, and Rehydration Beverages with the brands Búcha® Live Kombucha, XingTea®, XingEnergy®, Marley One Drop®, Marley Mellow Mood®, Marley Mate™, Marley Cold Brew™, Coco-Libre®, PediaAde™, and Aspen Pure® PH and Aspen Pure® Probiotic Water. The Company’s brands are sold across all 50 states within the US and in more than 10 countries internationally across all channels via direct and store door distribution systems. The company operates the websites www.newagebev.com, www.newagehealth.us, www.mybucha.com, www.xingtea.com, www.aspenpure.com, www.drinkmarley.com, www.cocolibre.com, and https://shop.newagebev.com.
New Age has exclusively partnered with the world’s 5th largest water charity, WATERisLIFE, to end the world water crisis with the most innovative technologies available. Donate at WATERisLIFE.com to help us #EnditToday.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management’s current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company including statements regarding New Age Beverage’s expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. New Age Beverages competes in a rapidly growing and transforming industry, and other factors disclosed in the Company’s filings with the Securities and Exchange Commission might affect the Company’s operations. Unless required by applicable law, NBEV undertakes no obligation to update or revise any forward-looking statements.
For investor inquiries about New Age Beverages Corporation please contact:
Cody Slach, Liolios Group, Inc.
Investor Relations Counsel
New Age Beverages Corporation
Chuck Ence, CFO
SOURCE: New Age Beverages Corporation