08/28/2024 | Press release | Distributed by Public on 08/28/2024 05:46
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Delaware
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2080
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80-0977200
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(State or other jurisdiction of
incorporation or organization) |
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(Primary Standard Industrial
Classification Code Number) |
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(IRS Employer
Identification Number) |
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Brandon C. Price, Esq.
Wachtell, Lipton, Rosen & Katz 51 West 52nd Street New York, New York 10019 Telephone: (212) 403-1000 |
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Derek J. Dostal, Esq.
Byron B. Rooney, Esq. Davis Polk & Wardwell LLP 450 Lexington Avenue New York, New York 10017 Tel: (212) 450-4000 |
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| Large accelerated filer | | | ☐ | | |
Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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Page
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About this Prospectus/Offer to Exchange
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| | | | ii | | |
Basis of Presentation
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| | | | iii | | |
Market and Industry Data
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| | | | iv | | |
Cautionary Note Regarding Forward-Looking Statements
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| | | | v | | |
Summary
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| | | | 1 | | |
Risk Factors
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| | | | 11 | | |
The Offer and Consent Solicitation
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| | | | 16 | | |
Market Information, Dividends, and Related Stockholder Matters
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| | | | 27 | | |
Description of Securities
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| | | | 34 | | |
Investor Rights Agreement
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| | | | 47 | | |
Legal Matters
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| | | | 49 | | |
Experts
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| | | | 49 | | |
Where You Can Find More Information; Incorporation by Reference
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| | | | 50 | | |
Form of Warrant Amendment
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| | | | A-1 | | |
Condensed Consolidated Statements of Operations Data
(in thousands, except per share data): |
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Six Months Ended June 30,
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Year Ended December 31,
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2024
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2023
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2023
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2022
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Net sales
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| | | $ | 400,889 | | | | | $ | 430,136 | | | | | $ | 864,714 | | | | | $ | 867,872 | | |
Gross profit
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| | | $ | 78,677 | | | | | $ | 69,974 | | | | | $ | 139,858 | | | | | $ | 152,765 | | |
Income (loss) from operations
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| | | $ | (26,540) | | | | | $ | (8,759) | | | | | $ | (20,429) | | | | | $ | 8,676 | | |
Net loss
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| | | $ | (41,432) | | | | | $ | (31,137) | | | | | $ | (34,567) | | | | | $ | (55,461) | | |
Net loss attributable to common shareholders - basic and diluted
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| | | $ | (41,258) | | | | | $ | (31,493) | | | | | $ | (34,743) | | | | | $ | (77,633) | | |
Net loss per share attributable to common shareholders - basic and diluted
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| | | $ | (0.47) | | | | | $ | (0.42) | | | | | $ | (0.43) | | | | | $ | (1.60) | | |
Weighted-average number of shares outstanding - basic and diluted
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| | | | 88,209 | | | | | | 75,543 | | | | | | 80,684 | | | | | | 48,444 | | |
Condensed Consolidated Statements of Cash Flows Data
(in thousands): |
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Six Months Ended June 30,
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Year Ended December 31,
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2024
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2023
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2023
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2022
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Net cash used in operating activities
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| | | $ | (15,691) | | | | | $ | (35,668) | | | | | $ | (64,064) | | | | | $ | (56,628) | | |
Net cash used in investing activities
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| | | $ | (104,760) | | | | | $ | (58,175) | | | | | $ | (168,355) | | | | | $ | (74,169) | | |
Net cash provided by financing activities
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| | | $ | 108,409 | | | | | $ | 96,385 | | | | | $ | 244,214 | | | | | $ | 134,676 | | |
Condensed Consolidated Balance Sheet Data
(in thousands, except per share data): |
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As of
June 30, 2024 |
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As of December 31,
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2023
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2022
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Cash and cash equivalents
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| | | $ | 24,316 | | | | | $ | 37,196 | | | | | $ | 16,838 | | |
Restricted cash
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| | | $ | 1,711 | | | | | $ | 644 | | | | | $ | 9,567 | | |
Current assets
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| | | $ | 332,525 | | | | | $ | 313,050 | | | | | $ | 298,099 | | |
Total assets
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| | | $ | 1,056,373 | | | | | $ | 971,514 | | | | | $ | 746,213 | | |
Current liabilities
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| | | $ | 253,867 | | | | | $ | 239,635 | | | | | $ | 216,135 | | |
Long term debt, net
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| | | $ | 280,255 | | | | | $ | 223,092 | | | | | $ | 162,502 | | |
Total liabilities
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| | | $ | 700,803 | | | | | $ | 583,558 | | | | | $ | 459,548 | | |
Series A Convertible Preferred Shares, $0.01 par value, 24,000 shares authorized, 23,512 shares, 23,512 shares and 23,588 shares issued and outstanding at June 30, 2024, December 31, 2023 and December 31, 2022, respectively, $11.50 liquidation value
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| | | $ | 274,042 | | | | | $ | 274,216 | | | | | $ | 274,936 | | |
Non-controlling interest
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| | | $ | - | | | | | $ | - | | | | | $ | 2,460 | | |
Total shareholders' equity
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| | | $ | 81,528 | | | | | $ | 113,740 | | | | | $ | 11,729 | | |
Book value per common share(1)
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| | | $ | 0.92 | | | | | | | | | | | | | | |
Name and Address of Beneficial Holder
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Aggregate Number of
Public Warrants Beneficially Owned |
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Percentage
of Public Warrants Beneficially Owned |
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Aggregate
Number of Private Warrants Beneficially Owned |
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Percentage
of Private Warrants Beneficially Owned |
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Executive Officers and Directors | | | | | | | | | | | | | | | | | | | | | | | | | |
Scott T. Ford
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
T. Christopher Pledger
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
William A. Ford
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Robert P. McKinney
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Blake Schuhmacher
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Name and Address of Beneficial Holder
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Aggregate Number of
Public Warrants Beneficially Owned |
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Percentage
of Public Warrants Beneficially Owned |
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Aggregate
Number of Private Warrants Beneficially Owned |
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Percentage
of Private Warrants Beneficially Owned |
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Joe T. Ford
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
R. Patrick Kruczek
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Hugh McColl, III
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
R. Brad Martin
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| | | | 2,058,057 | | | | | | 12% | | | | | | - | | | | | | -% | | |
Mark A. Edmunds
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| | | | 74,000 | | | | | | 0% | | | | | | - | | | | | | -% | | |
Josie C. Natori
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Leslie Starr
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| | | | 74,000 | | | | | | 0% | | | | | | - | | | | | | -% | | |
Oluwatoyin Umesiri
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Jeffrey H. Fox
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
All current directors and executive officers as a group (14 individuals)
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| | | | 2,206,057 | | | | | | 13% | | | | | | - | | | | | | -% | | |
5% Holders: | | | | | | | | | | | | | | | | | | | | | | | | | |
Westrock Group, LLC
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Brown Brothers Harriman & Co.
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
The Stephens Group, LLC
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Sowell Westrock, L.P.
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
HF Direct Investments Pool, LLC
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Southeastern Asset Management, Inc.
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| | | | - | | | | | | -% | | | | | | - | | | | | | -% | | |
Period
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Low Sales Price of
Common Shares |
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High Sales Price
of Common Shares |
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Low Sales Price
of Public Warrants |
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High Sales Price
of Public Warrants |
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July 1, 2024 to August 27, 2024
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| | | $ | 8.32 | | | | | $ | 10.25 | | | | | $ | 1.22 | | | | | $ | 2.14 | | |
Quarter ended June 30, 2024
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| | | $ | 9.60 | | | | | $ | 10.99 | | | | | $ | 0.92 | | | | | $ | 2.54 | | |
Quarter ended March 31, 2024
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| | | $ | 8.86 | | | | | $ | 11.21 | | | | | $ | 1.34 | | | | | $ | 2.64 | | |
Quarter ended December 31, 2023
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| | | $ | 6.88 | | | | | $ | 10.49 | | | | | $ | 0.90 | | | | | $ | 2.67 | | |
Quarter ended September 30, 2023
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| | | $ | 8.58 | | | | | $ | 11.89 | | | | | $ | 1.80 | | | | | $ | 3.23 | | |
Quarter ended June 30, 2023
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| | | $ | 10.28 | | | | | $ | 12.90 | | | | | $ | 2.25 | | | | | $ | 3.28 | | |
Quarter ended March 31, 2023
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| | | $ | 10.50 | | | | | $ | 13.90 | | | | | $ | 1.58 | | | | | $ | 2.46 | | |
Quarter ended December 30, 2022
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| | | $ | 9.34 | | | | | $ | 14.71 | | | | | $ | 1.01 | | | | | $ | 2.51 | | |
Quarter ended September 30, 2022
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| | | $ | 9.52 | | | | | $ | 14.40 | | | | | $ | 0.90 | | | | | $ | 1.87 | | |
Exhibit No.
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Description
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10.16+ | | | Westrock Coffee Holdings, LLC Form of Option Award Agreement (incorporated by reference to Exhibit 10.19 to Westrock Coffee Company's Registration Statement on Form S-4, filed with the SEC on August 3, 2022). | |
10.17+ | | | Westrock Coffee Holdings, LLC Form of Restricted Unit Award Agreement (incorporated by reference to Exhibit 10.20 to Westrock Coffee Company's Registration Statement on Form S-4, filed with the SEC on August 3, 2022). | |
10.18+ | | | Westrock Coffee Company Deferred Compensation Plan for Non-Employee Directors (incorporated by reference to Exhibit 10.19 to Westrock Coffee Company's Annual Report on Form 10-K, filed on March 15, 2024). | |
10.19+ | | | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.3 to Westrock Coffee Company's Quarterly Report on Form 10-Q, filed on May 9, 2024). | |
10.20* | | | Dealer Manager Agreement, dated as of August 28, 2024, by and among Westrock Coffee Company, Stifel, Nicolaus & Company, Incorporated, as dealer manager. | |
10.21* | | | Tender and Support Agreement, dated as of August 28, 2024, by and among Westrock Coffee Company and the warrant holders party thereto. | |
21.1 | | | List of Subsidiaries of Westrock Coffee Company (incorporated by reference to Exhibit 21 to the Registrant's Annual Report on Form 10-K, filed with the SEC on March 15, 2024). | |
23.1* | | |
Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm.
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23.2* | | |
Consent of Wachtell, Lipton, Rosen & Katz (included as part of Exhibit 5.1 hereto).
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23.3* | | |
Consent of Wachtell, Lipton, Rosen & Katz (included as part of Exhibit 8.1 hereto).
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24.1* | | |
Power of Attorney (included on signature page to the initial filing of this registration statement).
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99.1* | | |
Form of Letter of Transmittal and Consent.
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99.2* | | |
Form of Notice of Guaranteed Delivery
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99.3* | | |
Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies, and Other Nominees
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99.4* | | |
Form of Letter to Clients of Brokers, Dealers, Commercial Banks, Trust Companies, and Other Nominees
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107* | | |
Filing Fee Table.
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Signature
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Title
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Date
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/s/ Scott T. Ford
Scott T. Ford
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Chief Executive Officer and Director
(Principal Executive Officer) |
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August 28, 2024
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/s/ T. Christopher Pledger
T. Christopher Pledger
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Chief Financial Officer
(Principal Financial Officer) |
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August 28, 2024
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/s/ Blake Schuhmacher
Blake Schuhmacher
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Chief Accounting Officer
(Principal Accounting Officer) |
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August 28, 2024
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/s/ Joe T. Ford
Joe T. Ford
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Chairman of the Board, Director
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August 28, 2024
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/s/ R. Patrick Kruczek
R. Patrick Kruczek
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Director
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August 28, 2024
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/s/ Hugh McColl, III
Hugh McColl, III
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Director
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August 28, 2024
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/s/ R. Brad Martin
R. Brad Martin
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Director
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August 28, 2024
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/s/ Mark Edmunds
Mark Edmunds
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Director
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August 28, 2024
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Signature
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Title
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Date
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/s/ Josie C. Natori
Josie C. Natori
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Director
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August 28, 2024
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/s/ Leslie Starr
Leslie Starr
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Director
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August 28, 2024
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/s/ Oluwatoyin Umesiri
Oluwatoyin Umesiri
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Director
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August 28, 2024
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/s/ Jeffrey H. Fox
Jeffrey H. Fox
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Director
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August 28, 2024
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