Nautilus, Inc. Completes Refinancing of Existing Term Loan, Enhancing its Liquidity Position and Increasing the Total Credit Facility to $130 Million
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.