Aterian Further Strengthens Its Balance Sheet With Extension Of Its Credit Facility

Credit Facility’s Financial Liquidity Covenant More Favorable

Maturity Extended to December 2026

NEW YORK, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”) today announced that it has extended its asset backed credit facility (“Credit Facility”) with MidCap Financial, which is managed by a subsidiary of Apollo Global Management, Inc.

The Credit Facility term has been extended to December 2026 and gives Aterian access to $17.0 million in current commitments which can be increased, subject to certain conditions, to $30.0 million. The Credit Facility extension reduces the minimum liquidity financial covenant from a peak of $15.0 million to $6.8 million of cash on hand and/or availability in the Credit Facility. The extension fee was less than $0.1 million.

Aterian’s Co-CEO and CFO, Arturo Rodriguez, commented, “We are excited to continue our long-term relationship with MidCap Financial, which started in 2017. MidCap Financial has been impressed by our recent initiatives to focus, simplify and stabilize our core business. This extension level sets the credit facility for 2024 while providing plenty of room for future growth.” Mr. Rodriguez continued, “With the credit facility’s flexibility on our liquidity covenants and, coupled with our existing cash, we have further strengthened Aterian’s balance sheet as we continue on our path towards adjusted EBITDA profitability in the second half of 2024.”

MidCap Financial Portfolio Head of Asset Based Lending, Brett Robinson, commented, “MidCap Financial has a long-standing relationship with the management team at Aterian and we are pleased to extend our existing credit facility with the company as they continue to execute on their business plans.”

About Aterian, Inc.
Aterian, Inc. (Nasdaq: ATER) is a technology-enabled consumer products company that builds and acquires leading e-commerce brands with top selling consumer products, in multiple categories, including home and kitchen appliances, health and wellness and air quality devices. The Company sells across the world's largest online marketplaces with a focus on Amazon and Walmart in the U.S. and on its own direct to consumer websites.

About MidCap Financial
MidCap Financial is a middle-market focused, specialty finance firm that provides senior debt solutions to companies across all industries. As of December 31, 2023, MidCap Financial provides administrative or other services for over $50 billion of commitments*. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, Inc, pursuant to an investment management agreement.