Nautilus, Inc. Completes Refinancing of Existing Term Loan, Enhancing its Liquidity Position and Increasing the Total Credit Facility to $130 Million
November 30 2022 - 4:05PM
Business Wire
Nautilus, Inc. (NYSE: NLS) (the “Company”) today announced the
amendment of its existing credit facility by refinancing the
previous term loan with a new $30 million term loan (“New Term
Loan”), thereby increasing the Company’s total credit facility to
$130 million. The credit facility previously consisted of a $100
million asset-based revolver and a $15 million term loan provided
by Wells Fargo Bank, NA.
The New Term Loan will be provided by SLR Credit Solutions
(f/k/a Crystal Financial), a portfolio company of SLR Capital
Partners. Wells Fargo Bank, NA will continue to provide the $100
million revolver and both facilities will mature on October 29,
2026. The incremental availability provided by the New Term Loan
facility, along with the Company’s cash balance, is expected to
provide sufficient working capital to fund business improvements
and growth initiatives and for general corporate purposes, as
needed.
"Our increased credit facility, along with our cash balance,
will allow us to finance key strategic and operating initiatives
and drive to sustained profitable growth,” said Aina Konold, Chief
Financial Officer, Nautilus, Inc. “With no debt maturities until
calendar 2026, we are well positioned to navigate short-term
macroeconomic challenges while continuing to make progress on our
North Star strategy. We are very pleased to continue our
partnership with Wells Fargo as our revolver lender and welcome SLR
Credit Solutions as our New Term Loan lender.”
The entire $130 million credit facility does not contain any
financial performance covenants and is governed by a single Minimum
Excess ABL Availability Covenant, which is the greater of (i) $10
million and (ii) 12.5% of the Combined Line Cap as defined in the
credit agreement. For additional information on these facilities,
please reference the Company's current report on Form 8-K filed
with the SEC on November 30, 2022.
OceanArc Capital Partners LLC acted as the Company’s exclusive
financial advisor for the transaction.
About Nautilus, Inc.
Nautilus, Inc. (NYSE:NLS) is a global leader in digitally
connected home fitness solutions. The Company’s brand family
includes Bowflex®, Nautilus®, Schwinn®, and JRNY®, its digital
fitness platform. With a broad selection of exercise bikes, cardio
equipment, and strength training products, Nautilus, Inc. empowers
healthier living through individualized connected fitness
experiences and in doing so, envisions building a healthier world,
one person at a time.
Headquartered in Vancouver, Washington, the Company’s products
are sold direct to consumer on brand websites and through retail
partners and are available throughout the U.S. and internationally.
Nautilus, Inc. uses the investor relations page of its website
(www.nautilusinc.com/investors) to make information available to
its investors and the market.
Forward-Looking Statements
This press release includes forward-looking statements
(statements which are not historical facts) within the meaning of
the Private Securities Litigation Reform Act of 1995, which may
include: the use of funds from the New Term Loan, projected,
targeted or forecasted financial, operating results and capital
expenditures, anticipated demand for the Company's new and existing
products, statements regarding the Company's prospects, resources
or capabilities; planned investments, strategic initiatives and the
anticipated or targeted results of such initiatives; the effects of
the COVID-19 pandemic on the Company’s business; and planned
operational initiatives and the anticipated cost-saving results of
such initiatives.. All of these forward-looking statements are
subject to risks and uncertainties that may change at any time.
Factors that could cause Nautilus, Inc.’s actual results to differ
materially from these forward-looking statements include: our
ability to meet borrowing conditions and remain in compliance with
the terms of the New Term Loan and the credit facility; weaker than
expected demand for new or existing products; our ability to timely
acquire inventory that meets our quality control standards from
sole source foreign manufacturers at acceptable costs; risks
associated with current and potential delays, work stoppages, or
supply chain disruptions, including shipping delays due to the
shortage of shipping containers; an inability to pass along or
otherwise mitigate the impact of raw material price increases and
other cost pressures, including unfavorable currency exchange rates
and increased shipping costs; experiencing delays and/or greater
than anticipated costs in connection with launch of new products,
entry into new markets, or strategic initiatives; our ability to
hire and retain key management personnel; changes in consumer
fitness trends; changes in the media consumption habits of our
target consumers or the effectiveness of our media advertising; a
decline in consumer spending due to unfavorable economic
conditions; risks related to the impact on our business of the
COVID-19 pandemic or similar public health crises; softness in the
retail marketplace; availability and timing of capital for
financing our strategic initiatives, including being able to raise
capital on favorable terms or at all; changes in the financial
markets, including changes in credit markets and interest rates
that affect our ability to access those markets on favorable terms
and the impact of any future impairment. Additional assumptions,
risks and uncertainties are described in detail in our registration
statements, reports and other filings with the Securities and
Exchange Commission, including the “Risk Factors” set forth in our
Annual Report on Form 10-K, as supplemented by our quarterly
reports on Form 10-Q. Such filings are available on our website or
at www.sec.gov. You are cautioned that such statements are not
guarantees of future performance and that our actual results may
differ materially from those set forth in the forward-looking
statements. We undertake no obligation to publicly update or revise
forward-looking statements to reflect subsequent developments,
events or circumstances.
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version on businesswire.com: https://www.businesswire.com/news/home/20221130006013/en/
Investor Relations: John Mills ICR, LLC 646-277-1254
John.Mills@icrinc.com
Media: John Fread Nautilus, Inc. 360-859-5815
jfread@nautilus.com
Robin Rootenberg Action Mary 925-464-8030
robin.rootenberg@actionmary.com
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