Coca-Cola Beverages Florida has renewed a $350 million revolving credit facility that the Tampa-based bottler says will support investments in its facilities, vehicle fleet, automation and digital systems.
The five-year senior unsecured facility replaces an agreement of the same size and includes a $200 million accordion feature, which could raise the company’s borrowing capacity to $550 million if additional lenders and financing are secured. Borrowings will carry interest at the Secured Overnight Financing Rate, or SOFR, plus 0.75% to 1.25%, depending on Coke Florida’s leverage ratio.
Chief Executive Officer Troy Taylor said the financing gives the company greater flexibility to improve its operations and continue growing.
“The additional capacity will support investments in our facilities, fleet, automation and digital capabilities,” Taylor said in a statement.
Coke Florida did not identify specific projects, provide a capital spending estimate or say how much of the facility it expects to use.
Chief Financial Officer Paul Pheffer said the financing was oversubscribed and added another bank to the company’s lending group. Coke Florida also cited its BBB+ credit rating as evidence of its financial position.
Citibank, PNC Capital Markets and BofA Securities arranged the facility. Citibank will serve as administrative agent, while PNC Bank and Bank of America will serve as co-syndication agents. BMO Bank, Huntington National Bank and Northern Trust also participated.
Founded in 2015, Coke Florida manufactures, sells and distributes Coca-Cola products across 47 Florida counties. The company employs more than 5,000 people and operates four production facilities and 18 distribution centers.