Nautilus, Inc. Announces A New $70,000,000 Credit Facility Comprised of a $55,000,000 Asset-Based Revolver & a $15,000,000 Te...
February 04 2020 - 4:05PM
Business Wire
New five-year credit facility expected to
provide significant incremental liquidity and financial flexibility
through January 31, 2025
Nautilus, Inc. (NYSE:NLS) today announced the closing of a new
five-year $70,000,000 Senior Secured Credit Facility (“the Credit
Facility”), consisting of a new $55,000,000 asset-based revolver
and a $15,000,000 term loan with Wells Fargo Bank, NA (“Wells
Fargo”). Nautilus, Inc. will use proceeds from the Credit Facility
to refinance the existing $40,000,000 asset-based facility, pay
transaction expenses, and for general corporate purposes.
Jim Barr, Chief Executive Officer, stated “Our new Credit
Facility provides us with additional financial flexibility to
capitalize on the strength of our brand portfolio and position us
for sustainable profitable growth as a global technology-driven
fitness company. Investing in our strategic initiatives, digital
platform, connected fitness products, go-to-market capabilities and
other market opportunities, will enable us to deliver new and
exciting solutions for our customers wherever they are in their
fitness journey.”
"We are very pleased to have partnered with Wells Fargo which is
known for its vast experience in the consumer and retail sectors.
Securing this financing package strengthens our balance sheet and
provides increased liquidity and greater financial flexibility.
This will allow us to strategically allocate capital to facilitate
the execution of our long-term growth strategies as we continue to
stabilize our business and return it to profitable growth,” said
Aina Konold, Chief Financial Officer.
The $70,000,000 Credit Facility does not contain any financial
performance covenants for the first two years of the facility
except for a minimum liquidity covenant of $7,500,000. Beginning
February 1, 2022, the minimum liquidity covenant shall decrease to
$5,000,000 and only a minimum EBITDA covenant shall apply. Interest
on the asset-based revolver shall accrue at LIBOR plus a margin of
1.75% - 2.25% (based on average quarterly availability) and
interest on the term loan shall accrue at LIBOR plus 5.00%. The
Credit Facility will have a five-year term maturing on January 31,
2025 and the term loan shall contain amortization as scheduled in
the credit agreement.
OceanArc Capital Partners LLC acted as the Company’s exclusive
financial advisor for the transaction.
About Nautilus, Inc.
Headquartered in Vancouver, Washington, Nautilus, Inc.
(NYSE:NLS) is a global technology-driven fitness solutions company
that believes everyone deserves a fit and healthy life. With a
brand portfolio including Bowflex®, Nautilus®, Octane Fitness®, and
Schwinn®, Nautilus, Inc. develops innovative products to support
healthy living through direct and retail channels as well as in
commercial channels. Nautilus, Inc. uses the investor relations
page of its website (www.nautilusinc.com/investors) to make
information available to its investors and the market.
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, including:
planned investments and initiatives and the anticipated results of
such initiatives. 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 Credit Facility; changes in the
financial markets, including changes in credit markets and interest
rates; 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; an inability to pass along or otherwise mitigate
the impact of raw material price increases and other cost
pressures, including unfavorable currency exchange rates;
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, retain and integrate
key management personnel, including our new Chief Financial
Officer; 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; and softness in the retail
marketplace. 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/20200204005803/en/
Media: John Fread Nautilus, Inc. 360-859-5815
jfread@nautilus.com
Carey Kerns The Hoffman Agency 503-754-7975
ckerns@hoffman.com
Investor Relations: John Mills ICR, LLC 646-277-1254
john.mills@ICRinc.com
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