Jamba Closes $25M Finance Deal

Bizjournals.com:

Jamba Inc. has raised $25 million through a financing deal with Victory Park Capital Advisors LLC, an Illinois investment manager.

The financing agreement is for $25 million in two-year senior secured notes.

Jamba, which is based in Emeryville and operates the struggling Jamba Juice Co. smoothie chain, is borrowing the funds at a steep cost: LIBOR (or the London Interbank Offered Rate), a widely used interest reference rate by banks lending to each other, plus 8 percent and 12.5 percent, according to a filing with the Securities and Exchange Commission.

Steven Berrard, president and CEO of Jamba, said in a statement the previously announced financing will give the company greater flexibility to execute its business plan. Berrard was named president and CEO in early August, replacing Paul Clayton.