Aterian amends credit facility with MidCap, extends to 2026

By Wendy Van Sickle

Columbus, Ohio, Feb. 26 – Aterian, Inc. on Feb. 23 amended its credit facility date Dec. 22, 2021 with MidCap Funding IV Trust as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The commitment expiry was extended to Dec. 22, 2026, and the minimum balance was reduced to $2.5 million.

Other changes included reducing the amount of the borrowing base attributable to slow-moving inventory to 15% of the portion of the borrowing base attributable to eligible inventory, eligible in-transit inventory and eligible slow-moving inventory; a reduction of the portion of the borrowing base attributed to eligible in-transit inventory; a reduction of the revolving commitment amount to $17 million (if the addition tranche is fully activated, the amount will increase to $30 million); a reduction of the amount of cash equivalents the may be held by restricted foreign subsidiaries to $100,000; a reduction of the minimum credit party liquidity to $6.8 million; and a reduction of the minimum availability covenant to $5 million.

Aterian is a New York City-based consumer product platform. The company was formerly known as the Mohawk Group Holdings, Inc.

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