TORRANCE, Calif., Sept. 12, 2011 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (Nasdaq:FARM) today announced it has entered into a new, three year $85 million revolving line of credit facility with Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE:WFC). The credit facility replaces the Company's existing $50 million facility, also with Wells Fargo Capital Finance, which was due to expire in March, 2012.
The credit facility is available for general corporate purposes. Combined with the Company's existing cash balances and its preferred stock portfolio, this borrowing capacity significantly increases Farmer Brothers' financial resources for both working capital and growth.
"We are pleased to have executed this significant increase in our credit facility. The combination of our cash position and preferred stock portfolio totaling approximately $31 million at June 30 and our strong balance sheet, gives the Company greater financial flexibility to execute on its strategic initiatives," said Interim Co-CEO and CFO Jeffrey Wahba at Farmer Brothers. "We also appreciate that Wells Fargo Capital Finance has structured a borrowing arrangement that effectively lowers our cost of borrowing by approximately 50 basis points compared to our previous agreement."
About Farmer Bros. Co.
Farmer Bros. Co. is a direct distributor of coffee, tea and culinary products. It offers thousands of items under a broad portfolio of recognized brands, including roasted coffees, cappuccinos and cocoas; assorted hot and iced teas; spices and seasoning blends; salad dressings, sauces and soup bases. Its product lines and services are specifically focused on the needs of its customers: foodservice establishments including restaurants, hotels, casinos, and non-commercial foodservice providers, as well as retailers such as convenience stores, coffee houses, and general merchandisers. It also provides private-label coffee programs to retailers through Coffee Bean Intl., one of the nation's specialty coffee roasters. For more information, go to: www.farmerbros.com.
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About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior secured financing, accounts receivable financing, purchase order financing and channel finance to companies across the United States and Canada. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting and others. For more information, visit wellsfargocapitalfinance.com.