Plant-based meat pioneer Beyond Meat (BYND) has entered into a new $150 million five-year secured revolving credit facility to support its future growth initiatives.
The new credit facility, which matures on April 21, 2025, also includes an option for an extension of up to an additional $200 million. It also replaces the company’s existing secured credit arrangements.
“Our current cash and liquidity position is strong, and we are pleased to complete this New Credit Facility on terms that will provide Beyond Meat with a greater amount of financial flexibility and better position the Company for long-term success,” said Mark Nelson, Beyond Meat’s CFO and Treasurer.
Shares in BYND have exploded 18% in the last five days, boosted by the news that Beyond Meat is teaming up with Starbucks (SBUX) to bring its famous plant-based beef to China for the first time.
Starbucks will offer a new menu to Chinese customers featuring BYND’s ‘beef’ in pastas and lasagna, as well as non-dairy milk and fake pork products.
This brings the company’s year-to-date gain to 17%, and, on average, analysts now believe the stock is in danger of pulling back. Indeed, the stock has a Hold analyst consensus on TipRanks, and an $84 average analyst price target (5% downside potential). (See Beyond Meat stock analysis on TipRanks)
“In the near-term, we expect coronavirus to weigh upon BYND’s restaurant and foodservice results, limiting the potential for outperformance, in our view” commented Oppenheimer analyst Rupesh Parikh on April 21.
He believes shares are now fully valued and absent a real catalyst near-term.