L.O.T.W. #137 - Reed's Inc. quenches thirst for liquidity and extends revolving line of credit
Loan amendment extends maturity and modifies terms of existing non-formula based RLOC provided by funds affiliated with Whitebox Advisors and Cantor Fitzgerald
Shortly following the close of a $5.0 million PIPE on September 15, ‘25, Reed’s Inc. amended its existing RLOC. Substantive changes included extending the maturity to September ‘26 and reducing the commitment from $10.0 million to $9.25 million.
👓At a Glance
Borrower: Reed’s Inc.
Lender: Funds affiliated with Whitebox Advisors Link
Deal Size: $9.25 million
Structure: Non-formula based revolving line of credit
Rate: 8.0% payable monthly in arrears
Term: ~12 month extension
Use of Proceeds: General corporate purposes
Source: SEC 8-K
📷Borrower Snapshot
Sector: Consumer Staples
Subsector: Beverages
Ownership: Public (NASDAQ: REED)
Commercial Stage: Revenue generating; LTM EBITDA (-)
Business Overview: Reed’s Inc. is a publicly traded natural beverage company specializing in craft sodas and ginger beer under the Reed’s and Virgil’s brands. The company sells through national grocery, club, mass, and foodservice channels, with a distribution footprint that supports both on-shelf retail and direct-to-consumer sales. Reed’s has been focused on driving operational efficiency, strengthening gross margins, and improving cash flow to support growth in the better-for-you beverage category.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $9.25 million
Maturity: September 30, 2026
Collateral: All asset lien
Rate: 8.0% fixed
Fees:
3% unused revolver fee
Other fees disclosed in agent fee letter
Financial Covenant:
Not permit min. qualified cash to fall below $400k
Not permit fair market value of inventory and account receivable to fall below $10.0 million