Farmer Bros. Co. secures $50MM credit facility with Wachovia Bank

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Farmer Bros. Co. has secured a $50MM credit facility with Wachovia Bank

Kerlin led Farmer Bros.’ financing efforts in selecting a lender and securing a $50 million asset-based credit facility to help fund the company’s acquisition of Sara Lee’s DSD Coffee Business. Farmer Bros. Co. is a publicly traded company based in Torrance, California. As part of the lender selection process, Kerlin and the company identified and made presentations to five targeted banks and received term sheet proposals from four banks. The Company, with Kerlin’s assistance, ultimately selected Wachovia to provide a $50MM line of credit with a term of three years and secured by certain company assets. Despite the rapidly deteriorating credit market in the fall of 2008 and the impending takeover of Wachovia by Wells Fargo, Wachovia honored its commitment. Kerlin facilitated the due diligence process with Wachovia and helped negotiate the final terms of the credit agreement.