Facility from alternative lender, Unprocessed Foods, LLC, an affiliate of the Ahimsa Foundation provides critical liquidity amidst broad corporate reorganization
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.
thanks for the comment and engagement. it's a unique deal for sure and I am still curious about the source of funds. Recent bond to equity conversion significantly diluted the warrant stake but the 2.0x MOIC is (to me) the real carrot if the company can execute post debt conversion and eventually refinance or transact. This could be case of viable tech but before its time. There aren't any cows or chickens on Mars so if that's were we are going, producing alternative protein might actually be viable.
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.
thanks for the comment and engagement. it's a unique deal for sure and I am still curious about the source of funds. Recent bond to equity conversion significantly diluted the warrant stake but the 2.0x MOIC is (to me) the real carrot if the company can execute post debt conversion and eventually refinance or transact. This could be case of viable tech but before its time. There aren't any cows or chickens on Mars so if that's were we are going, producing alternative protein might actually be viable.
The warrants look nice!
Recently announced huge debt for equity conversion so likely heavily diluted.