White Oak Commercial Finance and Hilco Global Provide $192MM Senior Secured Credit Facility for Royal Cup Coffee and Tea

NEW YORK--(BUSINESS WIRE)--White Oak Commercial Finance (“WOCF”), an affiliate of White Oak Global Advisors (“White Oak”), acting as Sole Lead Arranger, announced it has closed a $192MM senior secured credit facility, comprised of a $155MM revolver and a $37MM term loan, for Royal Cup Coffee and Tea (“Royal Cup” or the “Company”), a national provider of end-to-end beverage and equipment solutions. WOCF acted as the revolver’s sole lender and Hilco Global acted as the administrative agent on the term loan with WOCF acting as co-lender.

The financing allowed Royal Cup, a Braemont Capital portfolio company, to acquire Farmer Brothers Coffee Co. (formerly NASDAQ: FARM) and provide ongoing working capital support to the combined businesses. The acquisition expands Royal Cup’s national footprint, manufacturing capabilities, and route density while strengthening its position across key commercial beverage end markets.

“We’re pleased to provide a flexible facility structure that supports Royal Cup’s vision of building a national platform,” said Mark Allen Smith, Managing Director, Originations at WOCF.

“This transaction represents an important milestone for Royal Cup as it expands its market presence and strengthens its operational capabilities through the acquisition of Farmer Brothers,” said Andre Hakkak, CEO and Co-Founder of White Oak Global Advisors. “The financing was structured to support the company’s continued growth while providing the flexibility needed to integrate the combined platform effectively.”

“This transaction highlights the strength of the lending group and the continued demand for creative, scalable financing solutions in the lower middle market,” said Ian Fredericks, CEO at Hilco Global Capital Solutions (Americas). “Hilco Global is pleased to provide capital support that positions Royal Cup for long-term operational and strategic success.”

About Royal Cup Coffee and Tea

Royal Cup Coffee and Tea manufactures and distributes high-quality coffee and tea in a variety of flavors and formats. Since 1896, Royal Cup’s reach extends throughout the United States, Mexico, Canada and the Caribbean, serving customers in the food service, hospitality, convenience, office and specialty coffee markets. Built on strong history, Royal Cup’s values are the heart of their work. Read more at www.royalcupcoffee.com.

About White Oak Commercial Finance

White Oak Commercial Finance, LLC is an affiliate of White Oak Global Advisors, LLC and provides financial solutions including asset-based lending, full-service factoring, lender financing, invoice discounting, government contract financing, supply chain financing, inventory financing, US import/export financing, trade credit risk management, accounts receivable management and credit/collections services. The firm has offices and personnel throughout the US, UK and Australia. White Oak Global Advisors, LLC and its financing affiliates provide over twenty lending products to the market that include term, asset-based, and equipment loans. Since its inception in 2007, White Oak Global Advisors, LLC and its affiliates have deployed nearly $28 billion. More information can be found at www.whiteoaksf.com/commercialfinance.

About Hilco Global

Hilco Global, a subsidiary of ORIX Corporation USA, is a diversified financial services company that delivers integrated professional services and capital solutions that help clients maximize value and drive performance across the retail, commercial and industrial, real estate, manufacturing, brand and intellectual property sectors, and more. Hilco Global provides a range of customized solutions to healthy, stressed, and distressed companies to resolve complex situations and enhance long-term enterprise value. Hilco Global works to deliver the best possible result by aligning interests with clients and providing strategic advice and, in many instances, the capital required to complete the deal. Hilco Global is based in Northbrook, Illinois and has more than 810 professionals operating on four continents. Visit www.hilcoglobal.com.