Nautilus Reports It’s Better Positioned to Navigate Macroeconomic Challenges After Refinancing Existing Loan
The digitally connected home fitness solutions provider will fund business improvements and growth initiatives while continuing to follow its North Star Strategy
Nautilus says it is better positioned to navigate short-term macroeconomic challenges after amending its existing credit facility by refinancing its previous term loan with a new loan.
The latest $30 million term loan increases the home fitness company’s total credit facility to $130 million.
Nautilus, which previously had a $100 million asset-based revolver and a $15 million term loan through Wells Fargo Bank, is being provided the new term loan by SLR Credit Solutions. The home fitness giant says that Wells Fargo will continue to provide the $100 million revolver and both facilities will mature in October 2026.
The at-home fitness company says it will use the additional availability provided by SLR, along with its cash balance, to fund business improvements and growth initiatives as well as for general corporate purposes.
OceanArc Capital Partners LLC served as financial advisor for Nautilus to complete the transaction.
The Bowflex and Schwinn maker has been focused on its North Star Strategy, a long-term plan to double sales by 2026 as it examines opportunities to accelerate its digital transformation.
Nautilus Chief Financial Officer Aina Konold said, “Our increased credit facility, along with our cash balance, will allow us to finance key strategic and operating initiatives and drive to sustained profitable growth.”
“With no debt maturities until calendar 2026, we are well positioned to navigate short-term macroeconomic challenges while continuing to make progress on our North Star strategy,” Konold added. “We are very pleased to continue our partnership with Wells Fargo as our revolver lender and welcome SLR Credit Solutions as our New Term Loan lender.”
This past fall, the fitness company, headquartered in Washington, launched a comprehensive review of strategic alternatives, including a potential sale.
Nautilus CEO Jim Barr reiterated in a Q2 2023 earnings call last month that interest in at-home fitness in a post-pandemic setting has been profound and enduring, and that it enhances Nautilus’s long-term opportunity.
Barr stated that the company’s research revealed that consumers, despite their financial constraints, are sticking with at-home fitness workouts. The findings showed that over 60% of adults in the US reported consistently working out at home, up from 43% at the start of 2020. Barr spoke with Athletech News back in July and discussed the future of fitness.
