Vintage Wine Estates Monetizes Assets and Successfully Refinances Debt
19 Dicembre 2022 - 11:00PM
Vintage Wine Estates, Inc. (Nasdaq: VWE and VWEWW) (“VWE” or the
“Company”), one of the fastest-growing wine producers in the U.S.
with an industry leading direct-to-customer platform, today
reported the establishment of an important scenic easement in San
Luis Obispo, California on its Laetitia Vineyard properties, the
sale of a portion of those properties and entry into an amended and
restated credit agreement.
On December 13, 2022, VWE was granted by The Land Conservancy of
San Luis Obispo a scenic easement on its Laetitia vineyard and
winery properties. The easement prohibits residential use and other
development along the coastline of California in the San Luis
Obispo region. It will also prohibit any uses that would cause
erosion of the land.
On December 15, 2022, the Company completed the sale of 965
acres of The Laetitia Vineyard for net cash proceeds of
approximately $9.1 million. Proceeds from the sale will be used to
reduce outstanding debt. VWE has retained the Laetitia winery as
well as approximately 900 acres on which the Company grows
sparkling varietals among others.
Pat Roney, Founder and Chief Executive Officer, commented, “The
Laetitia Vineyard sale demonstrates our ongoing portfolio and asset
management strategy. We had identified opportunities back in fiscal
2021, including this sale. We continue to pursue more of these
initiatives to monetize assets where the economics are beneficial.
I am especially pleased that we have been able to work with the
county of San Luis Obispo to preserve our most precious resources -
even beyond our ownership. We believe this validates our ongoing
commitment to environmental stewardship and our sustainability
strategy.”
Refinancing Provides Financial Flexibility and Extends
Maturities to 2027
On December 13, 2022, VWE entered into a Second Amended Loan and
Security Agreement included a new, real estate backed term loan
facility in the principal amount of approximately $156.5 million
which matures in December 2027. The proceeds of the term loan were
used to repay debt. Under the revised credit agreement, the
maturity of the Company’s revolving credit facility was also
extended to December 2027. While varying based on borrowings, rates
under the new facility are based on SOFR plus approximately 2.0% to
2.5%. Approximately 80% of the debt is hedged at a blended rate of
2.3% until 2025.
Kris Johnston, Chief Financial Officer, noted, "This refinancing
combined with the monetization of the Laetitia properties enhances
our financial flexibility as we continue to pursue our strategic
growth initiatives. The amended facilities also lengthen our debt
maturity profile and improve key terms and covenants. We believe
the support of our banks in this highly variable credit environment
is also a testament to our potential and our growth plans.”
About Vintage Wine Estates, Inc.
Vintage Wine Estates (Nasdaq: VWE and VWEWW) is a family of
wineries and wines whose singular focus is producing the finest
quality wines and incredible customer experiences with wineries
throughout Napa, Sonoma, California’s Central Coast, Oregon and
Washington State. Since its founding 20 years ago, the Company
has grown to be the 14th largest wine producer in the U.S., selling
more than two million nine-liter equivalent cases annually. To
consistently drive growth, the Company curates, creates, stewards
and markets its many brands and services to customers and end
consumers via a balanced omni-channel strategy encompassing
direct-to-consumer, wholesale and exclusive brand arrangements with
national retailers. While VWE is diverse across price points and
varietals with over 60 brands ranging from $10 to $150 USD at
retail, its primary focus is on the fastest growing luxury segment
of the U.S. wine industry with the majority of brands selling at
over $15 per bottle. The Company regularly posts updates and
additional information at https://www.vintagewineestates.com.
Forward-Looking Statements
Some of the statements contained in this press release are
forward-looking statements within the meaning of applicable
securities laws (collectively, “forward-looking statements”).
Forward-looking statements are all statements other than those of
historical fact, and generally may be identified by the use of
words such as “anticipate,” “believe,” “continue,” “driving,”
“estimate,” “expect,” “future,” “intend,” “may,” “making,”
“outlook,” “plan,” “project,” “should,” “will,” “would” or other
similar expressions that indicate future events or trends. These
forward-looking statements include, but are not limited to,
statements regarding VWE’s future plans regarding its vineyard
portfolio and asset management strategies, estimates and forecasts
of financial and performance metrics, projections of market
opportunity and market share, business plans and strategies,
including strategic growth initiatives, expansion and acquisition
opportunities, growth prospects and consumer and industry trends.
These statements are based on various assumptions, whether or not
identified in this news release, and on the current expectations of
VWE’s management. These forward-looking statements are not intended
to serve as, and should not be relied on by any investor as, a
guarantee of actual performance or an assurance or definitive
statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and may differ materially
from those contained in or implied by such forward-looking
statements. These forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond the
control of VWE. Factors that could cause actual results to differ
materially from the results expressed or implied by such
forward-looking statements include, among others: the Company’s
limited experience operating as a public company and its ability to
remediate its material weakness in internal control over financial
reporting and to maintain effective internal control over financial
reporting, the ability of the Company to retain key personnel, the
effect of economic conditions on the industries and markets in
which VWE operates, including financial market conditions, rising
inflation, fluctuations in prices, interest rates and market
demand; risks relating to the uncertainty of projected financial
information; the effects of competition on VWE’s future business;
risks related to the organic and inorganic growth of VWE’s business
and the timing of expected business milestones; the potential
adverse effects of the ongoing COVID-19 pandemic on VWE’s business
and the U.S. economy; declines or unanticipated changes in consumer
demand for VWE’s products; VWE’s ability to adequately source
grapes and other raw materials and any increase in the cost of such
materials; the impact of environmental catastrophe, natural
disasters, disease, pests, weather conditions and inadequate water
supply on VWE’s business; VWE’s level of insurance against
catastrophic events and losses; VWE’s significant reliance on its
distribution channels, including independent distributors;
potential reputational harm to VWE’s brands from internal and
external sources; possible decreases in VWE’s wine quality ratings;
integration risks associated with recent acquisitions; possible
litigation relating to misuse or abuse of alcohol; changes in
applicable laws and regulations and the significant expense to VWE
of operating in a highly regulated industry; VWE’s ability to
maintain necessary licenses; VWE’s ability to protect its
trademarks and other intellectual property rights; risks associated
with the Company’s information technology and ability to maintain
and protect personal information; VWE’s ability to make payments on
its indebtedness; and those factors discussed in the Company’s most
recent Annual Report on Form 10-K and in subsequent Quarterly
Reports on Form 10-Q or other reports filed with the Securities and
Exchange Commission. There may be additional risks including other
adjustments that VWE does not presently know or that VWE currently
believes are immaterial that could also cause actual results to
differ from those expressed in or implied by these forward-looking
statements. In addition, forward-looking statements reflect VWE’s
expectations, plans or forecasts of future events and views as of
the date and time of this news release. VWE undertakes no
obligation to update or revise any forward-looking statements
contained herein, except as may be required by law. Accordingly,
undue reliance should not be placed upon these forward-looking
statements.
Contacts:
InvestorsDeborah K. Pawlowski / Patty
Yahn-UrlaubKei Advisors LLCdpawlowski@keiadvisors.com /
pyahnurlaub@keiadvisors.comPhone: 716.843.3908 |
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MediaMary Ann
VangrinMVangrin@vintagewineestates.com |
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