Impossible Foods said to mull credit line to tackle coronavirus fallout

A woman plants a the 'Impossible' branding on a prepared product. Photo: Impossible Foods

Impossible Foods is discussing a new credit line worth several hundred million dollars with its lenders, as the plant-based meat company braces for the economic fallout of the coronavirus outbreak, people familiar with the matter said on Tuesday.

The move comes as many restaurants, bars and food courts, which source plant-based meat from Impossible Foods, shut down or face empty seats as customers stay home to combat the spread of the coronavirus pandemic.

California-based Impossible Foods expects a financial downturn to weigh on its business, the three sources said. Earlier this week it raised roughly $500 million in a series F funding round to bolster its finances and fund expansion.

The fundraising has also increased the amount of money banks are comfortable lending the company, another factor in its decision to explore the credit line, the sources said.

The sources, who requested anonymity as the matter is private, cautioned that the deliberations are still preliminary and that the final decision will be influenced by how the coronavirus outbreak evolves over the coming weeks. Impossible Foods declined to comment.

Companies have rushed to borrow more money and draw down on credit lines to boost their cash coffers in anticipation of a potential global recession as a result of the coronavirus pandemic.

Top Silicon Valley venture capital firm Sequoia recently called the coronavirus healthcare crisis a “black swan” event and urged its start-ups to be careful with cash.

Impossible Foods, whose backers include venture capital investors Khosla Ventures and Horizons Ventures, as well as celebrities like tennis star Serena Williams and singer Katy Perry, has so far raised $1.3 billion in the private market.

Impossible Foods says its burgers are sold at more than 15,000 restaurants around the world. It also recently started selling its products at certain U.S. grocery stores.

Reuters

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.