Cadwalader Represents Rabobank on Innovative $500 Million Sustainability-Linked Coffee Financing

May 25, 2021

Cadwalader advised Rabobank as the administrative agent, collateral agent, sole bookrunner and lead arranger in a $500 million sustainability-linked senior secured revolving credit facility for Mercon Coffee Group, a global and vertically integrated green coffee supplier. The credit facility features pricing that is linked to key sustainability initiatives measured by performance indicators that are aligned with Mercon’s long-term strategy and purpose of building a better coffee world, with any discount to be disbursed to Mercon’s flagship sustainability program, LIFT, or to the Seeds for Progress Foundation, contributing to the overall wellbeing of coffee growing communities.

The financing also featured an innovative dual-tranche structure consisting of a $250 million Origin Tranche to finance assets in Mercon’s coffee growing origin countries, including Nicaragua, Brazil, Guatemala, Honduras and Vietnam, and a $250 million Destination Tranche to finance assets in countries coffee is destined to, such as the U.S., Canada and European countries. The Origin Tranche featured significant participation from multiple international development banks.

The Cadwalader team was led by Finance partners Christopher McDermott and Jeffrey Nagle, and included senior attorney Matthew Stempler and associate Stephen Atkinson.