TAMPA, Fla.--(BUSINESS WIRE)--Coca-Cola Beverages Florida, LLC (Coke Florida), a family-owned, independent Coca-Cola bottler, today announced that it completed a private offering of $375 million in senior unsecured notes (the “Notes”) and that it entered into an agreement for a new $325 million senior unsecured revolving credit facility (the "Credit Facility"). Proceeds from the Notes offering and Credit Facility will be used to refinance Coke Florida’s existing indebtedness, and for working capital, capital expenditure and general corporate purposes. Both Coke Florida and the Notes are rated BBB+ by Egan Jones Ratings Company.
“Our new capital structure gives us additional financial flexibility as we continue to aggressively implement transformational initiatives that are focused on accelerating our sales and value share growth, enhancing our operating margins, and improving the reliability, capability and efficiency of our supply chain network,” said Troy Taylor, Chairman and Chief Executive Officer of Coke Florida. “We are making the necessary investments to build a growth-oriented, sustainable, world-class bottler that is locally-driven and customer and consumer focused.”
The Notes offering included $205 million of 10-year bonds at a yield of U.S. Treasury + 145 basis points, with a coupon of 3.81%; $70 million of 15-year bonds at a yield of U.S. Treasury + 170 basis points, with a coupon of 4.06%; and $100 million of 20-year bonds at a yield of US Treasury + 170 basis points, with a coupon of 4.24%. The Notes have a blended coupon of 3.97% and an average year to maturity of 13.6 years.
Borrowings under the Credit Facility will bear interest at a rate of LIBOR plus a spread of 0.875% to 1.375%, depending on Coke Florida's leverage ratio. The Credit Facility has a five-year maturity and a $200 million accordion feature. The Credit Facility replaces Coke Florida’s existing $450 million unsecured revolving credit facility.
"Our total capital raise was substantially oversubscribed at nearly $1.2 billion, which validates our strong performance to date and continues to demonstrate our ability to access capital at highly competitive terms and rates,” said Erika Noonburg-Morgan, Chief Financial Officer of Coke Florida. “This refinancing lowers our overall cost of debt and extends our debt portfolio’s weighted average years to maturity.”
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. served as joint lead placement agents for the Notes offering. The Notes were placed by the joint lead placement agents to a group of leading U.S. institutional investors.
“I would like to again thank our banking partners for their continued support of our business, and welcome the investors in our Notes offering,” Noonburg-Morgan said.
The Credit Facility was arranged by Citibank, N.A., PNC Capital Markets LLC, and J.P. Morgan Securities LLC as Joint Lead Arrangers and Joint Bookrunners. Citibank, N.A. is serving as Administrative Agent, PNC Bank, N.A. acted as Syndication Agent, and JPMorgan Chase Bank, N.A. served as Documentation Agent. BMO Harris Bank, N.A., Capital One, N.A., and Synovus Bank are participants in the Credit Facility.
Ropes & Gray LLP represented Coke Florida, Weil Gotshal & Manges LLP represented the arrangers of the Credit Facility, and Morgan Lewis & Bockius LLP represented the purchasers in the Notes offering.
About Coca-Cola Beverages Florida, LLC
Coca-Cola Beverages Florida, LLC (Coke Florida) is a family-owned, independent Coca-Cola bottler. Coke Florida’s exclusive territory covers over 18 million consumers across Florida and includes the major metropolitan markets of Jacksonville, Miami, Orlando and Tampa. Coke Florida sells, manufactures, and distributes over 600 products of The Coca-Cola Company and other partner companies. Coke Florida is the third largest privately-owned Coca-Cola bottler and the sixth largest independent bottler of Coca-Cola products in the United States. Coke Florida was founded in 2015 and is headquartered in Tampa, Florida. For more information, please visit www.cocacolaflorida.com.