Vintage Wine enters forbearance to March 31 with revolver lenders

By Wendy Van Sickle

Columbus, Ohio, March 5 – Vintage Wine Estates, Inc. entered into a forbearance agreement with its lenders regarding its second amended and restated loan and security agreement dated Dec. 19, 2022 with BMO Bank NA as administrative agent on Feb. 28, according to an 8-K filed with the Securities and Exchange Commission.

The agent and lenders have agreed to forbear from enforcing their rights and remedies in respect of certain events of default under the loan agreement through March 31 so long as no further event of default occurs and the company and borrowers comply with the terms.

The agreement reduces revolving commitments by $20 million to $180 million but permits continued borrowing; increases during the forbearance period the interest rate for revolving loans by 100 basis points; provides that during the forbearance period the borrowers will not maintain cash in excess of their projected needs, with any excess to be used to pay down revolving loans; requires compliance with some specified milestones related to business planning; and requires payment of certain fees, including a one-time payment of 7.5 bps to the agent for the benefit of the consenting lenders.

The family of wineries and wines is based in Incline Village, Nev.

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