Suja Life, a beverage company and maker of Suja Organic, Vive Organic and Slice Soda, entered into an amended and restated credit agreement with JPMorgan Chase Bank as administrative agent, which amends and restates the company’s existing credit agreement originally dated Aug. 23, 2021.
Under the agreement, the applicable interest rate is the Term SOFR Rate plus 1.75%, 2.00%, or 2.25% per annum based on the company’s consolidated net leverage ratio.
“Reducing our cost of capital has been a priority for Suja Life since our IPO, reflecting a business today that supports a different lender base than the one that financed us as a private company,” Jeff Pedersen, chief financial officer of Suja Life, said. “We believe that the consistency of our cash flow generation gave our lenders the confidence to back this refinancing on improved terms. Importantly, we are not taking on any additional debt with this transaction, but are reducing what it costs us to carry the debt we already have. This refinancing reflects our partnership with our banks and delivers a substantial reduction in our borrowing spread, with a corresponding benefit to our available cash flow.”
As a result of this refinancing, the company expects its 2026 total interest expense to improve to $18 million.