Riverview Acquisition in an 8-K filing disclosed that investors have elected to redeem approximately 73.5% of its outstanding Class A shares ahead of today’s scheduled vote on a merger with Westrock Coffee.
That leaves approximately $66 million in the Riverview’s trust account. After the redemptions and prior to payment of transaction expenses, Westrock now expects to receive approximately $295.9 million in gross proceeds, including a $201.4 million PIPE, the $66 million in Riverview’s trust and $28.5 million (including via contribution of notes) from the concurrent sale of an aggregate of 2.85 million Westrock shares at $10 each. The additional funding more than covers the $250 million minimum cash condition, getting the deal across the finish line, assuming a favorable shareholder vote today.
When announced in April, the deal valued the combined company at approximately $1.1 billion and was expected to deliver $500 million in gross cash proceeds to Westrock. Those figures assumed zero redemptions.
The PIPE commitments come from R. Brad Martin, NFC Investments and the other Riverview Acquisition founders, $25 million from Westrock Coffee founders, and $78 million each from HF Capital, the Haslam family investment office, and funds managed by Southeastern Asset Management.
Westrock Coffee also has debt financing from Wells Fargo for a $300 million senior secured credit facility available at deal closing. The credit facility will be used to re-finance existing debt and fund the company’s expansion plans.
Westrock Coffee is an integrated coffee, tea, flavors, extracts, and ingredients company in the U.S., providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services. Read more.
