Flux amends, upsizes Gibraltar secured revolver to $16 million

By William Gullotti

Buffalo, N.Y., Feb. 1 – Flux Power Holdings Inc. and subsidiary Flux Power, Inc. amended its loan and security agreement with Gibraltar Business Capital, LLC on Jan. 30, according to an 8-K filed with the Securities and Exchange Commission.

The amendment increased the facility commitment amount to $16 million from $15 million, which incurred a $10,000 non-refundable cash amendment fee.

In addition, amendments were made to the facility’s definition of “eligible accounts” and the EBITDA minimum financial covenant.

No other changes were made to the original loan and security agreement, signed July 28, 2023.

As previously reported, the revolver matures on July 28, 2025, but the maturity can automatically be extended for one year by paying a 0.75% fee on the revolving commitment before maturity.

The commitment increase used one of the available five $1 million incremental increases available under the agreement.

Borrowings accrue interest at SOFR plus 550 basis points, which may be increased to SOFR plus 850 bps in the event of a default.

Borrowings may be prepaid in whole or in part at any time with an exit fee of 2% of the revolving commitment if prepaid in the first year after settlement and an exit fee of 1% of the revolving commitment if prepaid after the first year.

The exit fee may be waived if prepaying debt with lender Bank of America.

The lithium battery and energy storage company is based in Vista, Calif.

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