Royal Cup Coffee and Tea has secured a $192 million senior secured credit facility to support its acquisition of Farmer Brothers Coffee and provide working capital for the combined business.

The financing was arranged by White Oak Commercial Finance, an affiliate of White Oak Global Advisors. The package comprises a $155 million revolving credit facility and a $37 million term loan. White Oak Commercial Finance acted as sole lead arranger and sole lender on the revolving facility, while Hilco Global served as administrative agent on the term loan, with White Oak acting as co-lender.

The funding enabled Royal Cup, a portfolio company of Braemont Capital, to complete its acquisition of Farmer Brothers Coffee, expanding its national presence and manufacturing capabilities.

According to the companies, the transaction will strengthen Royal Cup's position across key commercial beverage markets by increasing route density and broadening its operational footprint.

Mark Allen Smith, managing director of originations at White Oak Commercial Finance, said the facility was designed to provide the flexibility needed to support Royal Cup's strategy of building a national beverage platform.

Andre Hakkak, CEO and co-founder of White Oak Global Advisors, described the acquisition as an important milestone for Royal Cup, adding that the financing would support the company's growth plans while providing flexibility during the integration of the two businesses.

Ian Fredericks, CEO of Hilco Global Capital Solutions (Americas), said the transaction reflected continued demand for scalable financing solutions in the lower middle market and would help position Royal Cup for long-term operational and strategic growth.

The acquisition of Farmer Brothers is expected to enhance Royal Cup's capabilities as a provider of beverage and equipment solutions across the US market.