L.O.T.W. #139 - Beyond Meat Bulks Up with Delayed Draw Term Loan
Facility from alternative lender, Unprocessed Foods, LLC, an affiliate of the Ahimsa Foundation provides critical liquidity amidst broad corporate reorganization
In May ‘25 Beyond Meat entered into a $100.0 million senior secured delayed-draw term loan with Unprocessed Foods, LLC, an affiliate of the Ahimsa Foundation, a nonprofit advocating for plant-based diets. The facility accrues 12.0% PIK interest through February 7, 2030, stepping up to 17.5% thereafter, with the potential to extend maturity to May 7, 2035 upon mutual consent. Proceeds will support general corporate purposes as the company advances its strategic turnaround and liquidity initiatives.
👓At a Glance
Borrower: Beyond Meat, Inc.
Lender: Unprocessed Foods, LLC
Deal Size: $100.0 million
Structure: Delayed draw (through February ‘26); principal due in Feb ‘30
maturity is extendable beyond initial maturity date but not to exceed May ‘2035
Rate: 12.0% PIK during initial term; increasing to 17.5% PIK during extended maturity period (if applicable)
Initial Term: 57 months
Use of Proceeds: General corporate purposes; fund strategic initiatives associated w/ turnaround & restructure
Source: Press Release
📷Borrower Snapshot
Sector: Consumer Staples
Subsector: Food Products
Ownership: Public (Nasdaq: BYND)
Commercial Stage: Generating Revenue; LTM EBITDA (-)
Business Overview: Beyond Meat, Inc. is a leading producer of plant-based meat alternatives designed to replicate the taste, texture, and nutritional profile of animal protein. The company’s product portfolio includes burgers, sausages, grounds, and other meat substitutes sold through retail, foodservice, and international channels. Headquartered in El Segundo, California, Beyond Meat partners with major restaurant chains and retailers to expand global adoption of plant-based proteins. The company’s mission is to positively impact human health, climate change, natural resource conservation, and animal welfare by shifting consumers toward sustainable protein sources.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $100.0 million
Maturity: February 7, 2030
Collateral: First priority all asset lien
Rate: 12.0% PIK
Warrants: ~9.5 million shares or ~12.5% ownership
Fees:
Commitment fee - $625k
Prepayment fee - 2.0x MOIC on prepaid principal (plus accrued int.)
Termination fee - (in liquidation event) 1% * original principal amount * # of months remaining until initial maturity date
Financial Covenants:
Min. liquidity of $15.0 million
Junior debt service cap. of $20.0 million in any fiscal year
Really interesting structure on this deal. The 12% PIK stepping up to 17.5% is pretty aggressive, but the warrants for 12.5% ownership tell the real story - the lender is clearly betting on equity upside rather than coupon income. The 2x MOIC prepayment penalty is brutal and essentialy locks Beyond Meat into this facility, which makes sense given their liquidity challenges. I'm curious about the $15M minimum liquidity covenant - that's razor-thin for a company this size, suggesting they're operating with very limited runway. The junior debt service cap of $20M annually also constrains their ability to term out other obligations. Thanks for the detailed breakdown of the structure.
The warrants look nice!