Nautilus Inc. has closed on a new five-year $70,000,000 Senior Secured Credit Facility, consisting of a new $55,000,000 asset-based revolver and a $15,000,000 term loan with Wells Fargo Bank. 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.
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 Feb. 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 Jan. 31, 202,5 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.
