WhiteHawk Capital to extend $56m credit facility to Black Rifle Coffee
WhiteHawk Capital Partners, LP, a private credit investment manager specializing in asset-based financing solutions, has announced a strategic partnership with Black Rifle Coffee Company, LLC. Under the agreement, WhiteHawk will provide a $56 million asset-based credit facility, commonly referred to as “the Financing.” Black Rifle Coffee intends to use the Financing to bolster incremental liquidity for its continued growth and to refinance existing debt.
Boosting Black Rifle Coffee’s Multi-Channel Sales
Black Rifle Coffee, a veteran-owned and operated enterprise, markets its coffee, coffee accessories, and branded apparel through three primary channels: Direct-to-Customer (DTC), wholesale, and coffee shop locations known as “Outposts.” The Financing comes at a time when Black Rifle Coffee has amassed a considerable DTC customer base through its robust subscription model. As of June 2023, the company reported having over 239,000 subscription-based customers.
Partnership Optimistic About Future Growth
Chris Mondzelewski, President of Black Rifle Coffee, expressed optimism about the Financing’s potential impact on the company’s long-term capital structure. “The proceeds of the Financing will bolster our continued growth, driven by increased brand awareness. We look forward to our continued partnership with WhiteHawk Capital Partners,” said Mondzelewski.
Brad Huge, Managing Director at WhiteHawk Capital Partners, echoed this sentiment. “We believe Black Rifle Coffee is well-positioned to continue its impressive growth,” Huge stated. “We are excited to work with a company that not only delivers high-quality coffee products but also supports meaningful initiatives for veterans and first responders.”
This asset-based financing agreement marks a pivotal step in both companies’ growth strategies, solidifying WhiteHawk Capital Partners as a leading player in asset-based financing solutions and reaffirming Black Rifle Coffee’s commitment to expansion and brand development.