COT Cott Corporation

As previously disclosed, on March 6, 2020 (the “Closing Date”), Primo Water Corporation (the “Company”) entered into a credit agreement (the “Credit Agreement”) among the Company, as parent borrower, Cott Holdings Inc. and Eden Springs Nederland B.V., each as subsidiary borrowers, certain other subsidiaries of the Company from time to time designated as subsidiary borrowers, Bank of America, N.A., as administrative agent and collateral agent, and the lenders from time to time party thereto (collectively, the “Lenders”). The material terms of the Credit Agreement are described in the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on March 10, 2020. The Credit Agreement includes a revolving credit facility (the “Revolving Credit Facility”) available for loans to the Company and its subsidiaries with aggregate commitments under the Credit Agreement of $350.0 million.

On March 31, 2020, the Company provided notice to the Lenders to borrow approximately $170.0 million (the “Borrowings”) under the Revolving Credit Facility. After giving effect to the Borrowings, the current balance of loans under the Revolving Credit Facility is $306.0 million, along with $43.3 million being utilized for letters of credit. The Borrowings are scheduled to mature five years from the Closing Date and may be repaid by the Company at any time without penalty.

The Company has elected to draw down on its Revolving Credit Facility as a precautionary measure to increase its cash position and preserve financial flexibility considering current uncertainty in the global markets resulting from the COVID-19 outbreak. The Company notes that it had sufficient liquidity prior to taking this action, and the proceeds from the Borrowings are currently being held on the Company’s balance sheet. In accordance with the terms of the Credit Agreement, the proceeds from the Borrowings may in the future be used for working capital and other general corporate purposes.