Craft Brew Alliance Announces $50 Million Credit Facility
Increases Flexible Borrowing Capacity to Support Future Growth
Craft Brew Alliance, Inc. (“CBA”) (Nasdaq:BREW), a leading craft brewing company, announced today that it has secured a $50 million credit facility with Bank of America Merrill Lynch. The new credit facility increases CBA’s overall borrowing capacity and takes advantage of favorable interest rates to support the company’s strategic projects and long-term growth while providing more flexibility to borrow and repay funds.
“As the craft beer market becomes increasingly complex and competitive, we’re confident that CBA’s differentiated strategy, expertise in craft brewing and branding, and national brewing and distribution capability will drive significant value for our business, our partners, and our shareholders,” said Joe Vanderstelt, chief financial officer, CBA. “As we continue building the CBA of the future, this new financing package provides increased access to funds and financial flexibility to support the key capital projects and strategic partnerships that will enable our long-term vision. We’re pleased to continue working with the team at Bank of America Merrill Lynch and appreciate their continued confidence and support of our business.”
Earlier this year, CBA announced plans to expand its largest-production brewery in Portland by 200,000 barrels, build a new sustainability-focused 100,000 barrel brewery in Hawaii to support the growth of Kona Brewing Co., and build a new Redhook brewpub in the brewing company’s hometown of Seattle. Additionally, CBA forged two new strategic partnerships with Appalachian Mountain Brewery of Boone, N.C. and Cisco Brewers of Nantucket, Mass.
Additional details regarding this transaction, including a related interest rate swap agreement, will be reported in a Form 8-K filed by Craft Brew Alliance with the Securities and Exchange Commission.
Statements made in this press release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future, including availability of financing, favorability of interest rates, and outcome of business strategies and partnerships, are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including, but not limited to, the Company’s report on Form 10-K for the year ended December 31, 2014. Copies of these documents may be found on the Company’s website, www.craftbrew.com, or obtained by contacting the Company or the SEC.
About Craft Brew Alliance
CBA is a leading craft brewing company, which brews, brands, and markets some of the world’s most respected and best-loved American craft beers.
The company is home to three of the earliest pioneers in craft beer: Redhook Ale Brewery, Washington’s largest craft brewery founded in 1981; Widmer Brothers Brewing, Oregon’s largest craft brewery founded in 1984; and Kona Brewing Company, Hawaii’s oldest and largest craft brewery founded in 1994. As part of Craft Brew Alliance, these craft brewing legends have expanded their reach across the U.S. and more than 15 international markets.
In addition to growing and nurturing distinctive brands rooted in local heritage, Craft Brew Alliance is committed to developing innovative new category leaders, such as Omission Beer, which is the #1 beer in the gluten free beer segment, and Square Mile Cider, a tribute to the early American settlers who purchased the first plots of land in the Pacific Northwest.
Publicly traded on NASDAQ under the ticker symbol BREW, Craft Brew Alliance is headquartered in Portland, Ore., and operates five breweries and five pub restaurants across the U.S. For more information about CBA and its brands, please visit www.craftbrew.com.