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Fitbit gets $250 million amended and restated revolver due 2020
By Angela McDaniels
Tacoma, Wash., Dec. 15 – Fitbit, Inc. entered into an amended and restated credit agreement on Thursday for its revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
Among other things, the revolver increased the company’s borrowing capacity to $250 million from $180 million or a lesser amount based on borrowing base calculations under the prior asset-based credit facility.
The company terminated its revolving credit and guarantee agreement, or the cash flow facility, with Morgan Stanley Bank NA and Morgan Stanley Senior Funding, Inc. The facility had a borrowing capacity of $50 million. No amounts of principal were outstanding under the cash flow facility at the time of termination.
The revolver has a $100 million accordion feature, a $50 million sublimit for the issuance of letters of credit and a $25 million sublimit for swingline loans.
The revolver matures in December 2020.
The interest rate is Libor plus 100 basis points to 175 bps. The commitment fee is 10 bps to 30 bps. Both are based on the company’s consolidated leverage ratio.
The revolver is secured by substantially all of the assets (other than intellectual property) of the company and its current and future domestic subsidiaries.
The revolver’s covenants require the company to maintain a consolidated fixed charge coverage ratio of at least 1.15 to 1 and a consolidated leverage ratio of less than 3 to 1 as at the last day of any period of four consecutive fiscal quarters.
As of Thursday, the company had no outstanding borrowings under the revolver.
Silicon Valley Bank is the administrative agent and a lender. Other lenders include SunTrust Bank, Deutsche Bank AG, Morgan Stanley Bank, NA, Bank of America, NA, Barclays Bank plc, Citibank, NA and City National Bank.
San Francisco-based Fitbit makes wearable connected health and fitness trackers.
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