Coke Florida Finalizes $350 Million Credit Facility Agreement
Coca-Cola Beverages Florida, LLC (Coke Florida), one of the largest independent Coca-Cola bottlers in the United States, has announced the successful renewal of its $350 million senior unsecured revolving credit facility, reinforcing the company’s financial strength and providing greater flexibility to support future business expansion. The renewed agreement is designed to ensure that Coke Florida has the capital resources necessary to continue investing in infrastructure, technology, operational improvements, and customer service across its growing business.
The renewed credit facility replaces the company’s previous $350 million revolving credit agreement while maintaining the same base commitment amount. However, the new financing arrangement introduces improved flexibility through updated terms, including a five-year maturity period and an additional $200 million accordion feature, allowing the company to increase borrowing capacity if future business needs require additional funding.
Financial Flexibility to Support Strategic Investments
Coke Florida views the renewed credit facility as a key component of its long-term financial strategy. Access to flexible financing enables the company to pursue investments that enhance operational efficiency while supporting sustainable growth throughout its service territory.
According to Troy Taylor, Chief Executive Officer of Coke Florida, the agreement strengthens the organization’s financial foundation while creating additional opportunities to invest in the future of the business.
Taylor explained that the renewed facility provides greater flexibility to fund strategic initiatives aimed at improving operations and customer service. Planned investments include enhancements to manufacturing and distribution facilities, expansion and modernization of the company’s transportation fleet, increased automation across operations, and continued development of digital technologies that improve efficiency and decision-making.
Beyond operational improvements, Taylor emphasized that the financing also supports investments in the company’s workforce, helping create opportunities for associates while ensuring Coke Florida remains well positioned to meet the evolving needs of customers throughout Florida.
He noted that maintaining access to capital is essential as the company continues building a stronger and more resilient business capable of supporting long-term growth.
Five-Year Revolving Credit Facility Provides Long-Term Stability
The newly renewed revolving credit facility has a five-year maturity, providing Coke Florida with stable access to financing over the medium term. Revolving credit facilities are commonly used by businesses to maintain liquidity, manage working capital requirements, and finance strategic investments without the need to issue new debt for every project.
An important enhancement included in the agreement is the $200 million accordion feature, which allows the company to expand the facility beyond the initial $350 million commitment if additional lender approvals are obtained. This optional expansion provides greater financial flexibility should acquisition opportunities, capital projects, or other strategic initiatives arise during the life of the agreement.
Borrowings under the facility will carry interest based on the Secured Overnight Financing Rate (SOFR) plus a margin ranging from 0.75% to 1.25%, depending on Coke Florida’s leverage ratio. Using SOFR as the benchmark reflects current market standards following the industry’s transition away from LIBOR as the primary reference rate for corporate lending.
The variable pricing structure rewards strong financial performance by allowing the company to benefit from lower borrowing costs when leverage remains at favorable levels.
Strong Banking Support Demonstrates Confidence
The renewed facility received significant support from the banking community, reflecting confidence in Coke Florida’s financial performance and long-term business strategy.
Paul Pheffer, Chief Financial Officer of Coke Florida, stated that renewing the five-year revolving credit facility demonstrates the confidence that the company’s banking partners have in its future direction.
Pheffer highlighted that the financing was oversubscribed, meaning lender demand exceeded the amount of financing sought by the company. Strong participation from financial institutions enabled Coke Florida to expand its banking syndicate by welcoming a new lending partner into the group.
According to Pheffer, the renewed agreement, combined with the company’s BBB+ credit rating, provides substantial liquidity and financial flexibility to support ongoing strategic investments while creating long-term value for the business.
Maintaining investment-grade credit ratings is an important advantage for companies seeking access to capital markets, as it generally allows borrowing at more competitive interest rates while demonstrating financial discipline and stability.
Funding Investments Across the Business
The renewed credit facility will support a wide range of capital investments across Coke Florida’s operations.
Among the areas expected to benefit are:
- Expansion and modernization of production and distribution facilities.
- Continued investment in transportation fleets to improve delivery capabilities.
- Increased automation to enhance operational efficiency.
- Digital transformation initiatives that strengthen business intelligence and customer service.
- Infrastructure improvements designed to support future growth.
- Investments that improve employee productivity and workplace capabilities.
These investments are intended to help the company maintain efficient operations while adapting to changing customer expectations and evolving market conditions.
Technology and automation continue to play an increasingly important role within the beverage industry, enabling companies to optimize supply chains, improve inventory management, reduce operating costs, and deliver products more efficiently to retailers and consumers.
Experienced Financial Institutions Lead the Transaction
The renewed credit facility was arranged by several leading financial institutions with extensive experience in corporate financing.
The transaction was jointly led by:
- Citibank, N.A.
- PNC Capital Markets LLC
- BofA Securities, Inc.
These institutions served as Joint Lead Arrangers and Joint Bookrunners, coordinating the financing process and assembling the lending syndicate.
In addition, Citibank, N.A. will serve as the Administrative Agent, overseeing the ongoing administration of the credit facility.
PNC Bank, N.A. and Bank of America, N.A. will serve as Co-Syndication Agents as well as Co-Documentation Agents, supporting the coordination and documentation of the financing agreement.
Additional participants in the lending syndicate include:
- BMO Bank N.A.
- The Huntington National Bank
- The Northern Trust Company
The participation of multiple major financial institutions provides diversification within the lending group while reinforcing market confidence in Coke Florida’s long-term business outlook.
Supporting Continued Growth Across Florida
As one of the largest Coca-Cola bottlers serving the state of Florida, Coke Florida continues to invest in expanding its operational capabilities while maintaining high service standards for retail customers, restaurants, entertainment venues, and other commercial partners.
The renewed credit facility aligns with the company’s strategy of making long-term investments that strengthen manufacturing, logistics, technology, and workforce development. Access to reliable financing enables the company to pursue these initiatives while maintaining financial flexibility to respond to changing market opportunities.
The inclusion of the accordion feature further positions the company to capitalize on future expansion opportunities without the need to renegotiate entirely new financing arrangements.
Positioning for the Future
The renewal of Coke Florida’s $350 million senior unsecured revolving credit facility represents more than a financing transaction—it underscores the company’s commitment to disciplined financial management and long-term growth. With improved flexibility, competitive borrowing terms, and strong backing from a syndicate of leading financial institutions, the company is well equipped to continue investing in its operations and supporting customers throughout Florida.
By combining a solid liquidity position, an investment-grade credit profile, and strategic access to capital, Coke Florida is strengthening its ability to modernize facilities, expand automation, enhance digital capabilities, and invest in its people. These initiatives are expected to support sustainable growth while positioning the company to remain competitive in the evolving beverage industry for years to come.
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