WATERBURY, Vt.--(BUSINESS WIRE)--April 4, 2002--Green Mountain Coffee, Inc. (NASDAQ: GMCR) announced today that its wholly-owned subsidiary, Green Mountain Coffee Roasters, Inc., has completed financing through Fleet National Bank to exercise options on all 2,217,859 shares of Keurig, Incorporated that have been granted to the Company by Keurig shareholders at an exercise price of $6.50 per share, including options previously exercised. The purchase is expected to be completed by the end of April, 2002 at a total cost of approximately $14.4 million.
In addition to a one-year extension of Green Mountain Coffee's existing $15 million line of credit, the Company has added an additional $5 million of term debt from Fleet National Bank in order to make this purchase and fund capital equipment purchases. The term debt provides for monthly interest payments and quarterly principal payments of $625,000 over the two-year term of the loan.
Keurig, Incorporated has approximately 5.4 million issued shares of capital stock outstanding. After the purchase, Green Mountain Coffee will own approximately 41% of Keurig, Inc., which includes 38,175 shares that Green Mountain Coffee purchased directly from Keurig in 1996 and 1997.
Green Mountain Coffee supported early research and development of the Keurig system, starting in 1994. In addition, Green Mountain Coffee was the first of the current six companies to be licensed to package branded coffee in the patented Keurig K-Cup(TM) , a single-serve coffee cartridge used in conjunction with the Keurig coffee brewer. As Keurig's oldest and most experienced K-Cup partner, Green Mountain Coffee has manufactured over 170 million K-Cups, and continues to produce and distribute more K-Cups than the other five licensees combined.
Robert Stiller, President and CEO of Green Mountain Coffee, Inc. said, "I am very pleased that we have received financing to increase our ownership in Keurig. The growth of the Keurig business holds great promise for Green Mountain Coffee. Currently the Keurig system provides consumers with the opportunity to sample and enjoy 18 Green Mountain Coffee selections, primarily in the workplace. Looking forward, I remain particularly excited about the potential that the Keurig technology holds for the home market."
Green Mountain Coffee, Inc. is a leader in the specialty coffee industry and has been recognized by Forbes Magazine for the past two years as one of the "200 Best Small Companies in America." The Company roasts high-quality arabica coffees and offers over 75 coffee selections including single-origin, estate, certified organic, Fair Trade, signature blends, and flavored coffees that it sells under the Green Mountain Coffee Roasters(R) and Frontier(R) Organic Coffee brands.
The majority of Green Mountain Coffee's revenue is derived from its wholesale operation that serves supermarkets, convenience stores, offices, and other locations where fine coffees are sold. Green Mountain Coffee also operates a direct mail business and an e-commerce website (http://www.GreenMountainCoffee.com) with secure online ordering for customers from its Waterbury, Vermont headquarters. Green Mountain Coffee seeks to make the world a better place for present and future generations by operating in an environmentally and socially conscientious manner.
Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, Keurig's successful development of the home market for the Keurig system, organizational changes, fluctuations in availability and cost of green coffee, the impact of a weaker economy, competition, business conditions in the coffee industry, the impact of the loss of one or more major customers, delays in the timing of adding new locations with existing customers, Green Mountain's level of success in continuing to attract new customers, variances from budgeted sales mix and growth rate, weather and special or unusual events, as well as other risks as described more fully in Green Mountain's filings with the Securities and Exchange Commission.