White Oak Commercial Finance and Hilco Global Provide $192MM Senior Secured Credit Facility for Royal Cup Coffee and Tea

Key Terms

senior secured credit facility financial

A senior secured credit facility is a loan or revolving line of credit where lenders have first legal claim on specific company assets (collateral) and the debt ranks above other obligations for repayment. For investors it signals where a lender sits in the repayment pecking order and how much protection creditors have if the company struggles, affecting credit costs, the company’s ability to borrow more, and potential recoveries in a default — like a mortgage taking priority over other claims on a house.

revolver financial

A revolver is a revolving credit facility — a line of borrowing a company can draw, repay and draw again as needed, similar to a corporate credit card for short-term cash needs. It matters to investors because it provides liquidity and flexibility to cover expenses, smooth cash flow swings, or bridge financing gaps; the size, cost and covenants of the revolver affect a company’s interest costs, financial health and default risk.

term loan financial

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

administrative agent financial

An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.

working capital financial

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

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NEW YORK--(BUSINESS WIRE)-- White Oak Commercial Finance (“WOCF”), an affiliate of White Oak Global Advisors (“White Oak”), acting as Sole Lead Arranger, announced it has closed a $192MM senior secured credit facility, comprised of a $155MM revolver and a $37MM term loan, for Royal Cup Coffee and Tea (“Royal Cup” or the “Company”), a national provider of end-to-end beverage and equipment solutions. WOCF acted as the revolver’s sole lender and Hilco Global acted as the administrative agent on the term loan with WOCF acting as co-lender.

The financing allowed Royal Cup, a Braemont Capital portfolio company, to acquire Farmer Brothers Coffee Co. (formerly NASDAQ: FARM) and provide ongoing working capital support to the combined businesses. The acquisition expands Royal Cup’s national footprint, manufacturing capabilities, and route density while strengthening its position across key commercial beverage end markets.

“We’re pleased to provide a flexible facility structure that supports Royal Cup’s vision of building a national platform,” said Mark Allen Smith, Managing Director, Originations at WOCF.

“This transaction represents an important milestone for Royal Cup as it expands its market presence and strengthens its operational capabilities through the acquisition of Farmer Brothers,” said Andre Hakkak, CEO and Co-Founder of White Oak Global Advisors. “The financing was structured to support the company’s continued growth while providing the flexibility needed to integrate the combined platform effectively.”

“This transaction highlights the strength of the lending group and the continued demand for creative, scalable financing solutions in the lower middle market,” said Ian Fredericks, CEO at Hilco Global Capital Solutions (Americas). “Hilco Global is pleased to provide capital support that positions Royal Cup for long-term operational and strategic success.”

About Royal Cup Coffee and Tea

Royal Cup Coffee and Tea manufactures and distributes high-quality coffee and tea in a variety of flavors and formats. Since 1896, Royal Cup’s reach extends throughout the United States, Mexico, Canada and the Caribbean, serving customers in the food service, hospitality, convenience, office and specialty coffee markets. Built on strong history, Royal Cup’s values are the heart of their work. Read more at www.royalcupcoffee.com.

About White Oak Commercial Finance

White Oak Commercial Finance, LLC is an affiliate of White Oak Global Advisors, LLC and provides financial solutions including asset-based lending, full-service factoring, lender financing, invoice discounting, government contract financing, supply chain financing, inventory financing, US import/export financing, trade credit risk management, accounts receivable management and credit/collections services. The firm has offices and personnel throughout the US, UK and Australia. White Oak Global Advisors, LLC and its financing affiliates provide over twenty lending products to the market that include term, asset-based, and equipment loans. Since its inception in 2007, White Oak Global Advisors, LLC and its affiliates have deployed nearly $28 billion. More information can be found at www.whiteoaksf.com/commercialfinance.

About Hilco Global

Hilco Global, a subsidiary of ORIX Corporation USA, is a diversified financial services company that delivers integrated professional services and capital solutions that help clients maximize value and drive performance across the retail, commercial and industrial, real estate, manufacturing, brand and intellectual property sectors, and more. Hilco Global provides a range of customized solutions to healthy, stressed, and distressed companies to resolve complex situations and enhance long-term enterprise value. Hilco Global works to deliver the best possible result by aligning interests with clients and providing strategic advice and, in many instances, the capital required to complete the deal. Hilco Global is based in Northbrook, Illinois and has more than 810 professionals operating on four continents. Visit www.hilcoglobal.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260602820212/en/

Jake Forrestal
Prosek Partners (on behalf of White Oak Global Advisors)
pro-whiteoak@prosek.com

Source: White Oak Commercial Finance