European Investor
08 Nov 2025, 16:36
Coca-Cola Consolidated, Inc. (COKE) buys back TCCC stake for $2.4B; adds $1.2B bridge loan, unwinds legacy pact
Coca-Cola Consolidated said it repurchased all of Carolina Coca-Cola Bottling Investments’ shares (an indirect The Coca-Cola Company unit) for about $2.4 billion cash, closing November 7, 2025. The buyback terminates the long-standing Stock Rights and Restrictions Agreement with TCCC and prompted the resignation of TCCC designee Elaine Bowers Coventry from the board.
To fund the deal, the company drew a new 364-day, senior unsecured $1.2 billion bridge term loan from Wells Fargo (Term SOFR + 1.00% at current rating), with voluntary prepay and mandatory prepay upon certain debt/equity issuances or significant asset distributions. Coca-Cola Consolidated also amended its revolving credit facility and two private shelf agreements (MetLife, NYL) to ensure the repurchase doesn’t trigger change-of-control defaults. Financial covenants on the bridge include minimum consolidated cash flow/fixed charges of ≥1.5x and maximum consolidated funded indebtedness/cash flow of ≤6.0x.
Coca-Cola Consolidated said it repurchased all of Carolina Coca-Cola Bottling Investments’ shares (an indirect The Coca-Cola Company unit) for about $2.4 billion cash, closing November 7, 2025. The buyback terminates the long-standing Stock Rights and Restrictions Agreement with TCCC and prompted the resignation of TCCC designee Elaine Bowers Coventry from the board.
To fund the deal, the company drew a new 364-day, senior unsecured $1.2 billion bridge term loan from Wells Fargo (Term SOFR + 1.00% at current rating), with voluntary prepay and mandatory prepay upon certain debt/equity issuances or significant asset distributions. Coca-Cola Consolidated also amended its revolving credit facility and two private shelf agreements (MetLife, NYL) to ensure the repurchase doesn’t trigger change-of-control defaults. Financial covenants on the bridge include minimum consolidated cash flow/fixed charges of ≥1.5x and maximum consolidated funded indebtedness/cash flow of ≤6.0x.