EMERYVILLE Calif. Jamba Inc., parent to the Jamba Juice brand, said Friday that it had closed on a $25 million financing agreement with Victory Park Capital Advisors LLC, an asset management firm in Chicago.
The agreement includes two-year, senior secured term notes and the issuance of 2 million shares of Jamba common stock to the investor. The stock comes with future options for either the repurchase or the sale of the issued stock at a future time for $1.50 per share, pending various restrictions. Jamba, which has struggled of late with stalled sales, has posted stock prices ranging from 94 cents per share to $7.80 per share over the past 52 weeks. Jamba holds about 52.6 million shares outstanding.
“We are pleased to have completed this financing which provides us greater financial flexibility to execute our business plan,” Steven R. Berrard, Jamba’s chief executive and president, said in a statement.
Under terms of the financing, the notes hold an interest rate pegged to the six-month LIBOR, or the London Interbank Offered Rate, plus 8 percent. Terms also include a floor, or minimum annual rate, of 12.5 percent.
In connection with the new agreement, Jamba’s previous credit agreement with Wells Fargo Foothill LLC was terminated.
Jamba operates or franchises 736 Jamba Juice locations.