Castle Brands Recapitalizes Balance Sheet, Substantially Expands and Extends Credit Facility and Significantly Lowers Interest Expense
Benefits of the Balance Sheet Recapitalization:
- The Revolving Credit facility was increased to
$60 millionand extended to July 2023.
- The weighted average cost of debt for the Company was reduced by approximately 350 basis points based on today's LIBOR.
- The Company's
$20 million11% Subordinated Notes have been fully retired.
- The combination of these steps will reduce the Company's annual interest and debt service expenses by over
- The new facility recognizes the value of the Company's bourbon inventory.
- The new facility will add incremental liquidity of approximately
"This balance sheet recapitalization and expansion of our revolving credit facility with our lender marks a major turning point for
"We are grateful for the support that our revolving credit facility lender has provided in the past. It has allowed us to build bourbon inventories of almost 35,000 barrels, enough to produce approximately 800,000 cases (9L) of
Forward Looking Statements
This press release includes statements of our expectations, intentions, plans and beliefs that constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, margins, sales, potential divestitures, profitability, liquidity, indebtedness and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. You can identify these and other forward-looking statements by the use of such words as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "thinks," "estimates," "seeks," "predicts," "could," "projects," "potential" and other similar terms and phrases, including references to assumptions. These forward looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward looking statements. These risks include our history of losses, our ability to expand our operations in both new and existing markets, our ability to develop or acquire new brands, our relationships with distributors, the success of our marketing activities, the effect of competition in our industry and economic and political conditions generally, including the current economic environment and markets. More information about these and other factors are described under the caption "Risk Factors" in
Telephone: (917) 991-6688
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