NAUTILUS, INC. (NYSE:NLS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Entry into a Material Definitive Agreement
On December 21, 2018, Nautilus, Inc. (the “Company”) entered into an amendment (the “Amendment”) to its existing Credit Agreement, dated December 5, 2014, with JPMorgan Chase Bank, N.A. (“Chase Bank”), as amended by Consent and Amendment to Loan Documents, dated December 31, 2015, and Second Amendment to Credit Agreement, dated March 1, 2017 (as amended, the “Credit Agreement”). The Credit Agreement provides for a $20,000,000 maximum revolving credit line for working capital, letters of credit and general corporate purposes. Among other changes, the Amendment (i) modified interpretations of certain accounting and financial terms in the Credit Agreement in connection with recent changes to U.S. generally accepted accounting principles related to new lease accounting standards effective January 1, 2019, (ii) added limitations on certain investment and acquisition activities over the term of the Credit Agreement, which was extended to December 31, 2021, and (iii) increased the maximum amount of certain capital expenditures that the Company may make in any fiscal year.
The interest rate applicable to each advance under the Credit Agreement may be based on Chase Bank’s floating prime rate or adjusted LIBOR, plus an applicable margin. The Amendment contains customary covenants, including minimum fixed charge coverage ratio and funded debt to EBITDA ratio, and limitations on capital expenditures.
The foregoing description does not purport to be complete and is qualified in its entirety by reference to the Amendment attached hereto as Exhibit 10.1 to this Current Report on Form 8-K.
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Item 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant |
Please refer to Item 1.01 above.
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Item 9.01 |
Financial Statements and Exhibits |
The following exhibit is furnished herewith and this list is intended to constitute the exhibit index:
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Third Amendment to Loan Documents, dated December21, 2018, and effective as of December 28, 2018, between JPMorgan Chase Bank, N.A. and Nautilus, Inc. |
NAUTILUS, INC. Exhibit
EX-10.1 2 nls3rdamendmentjpmc….
To view the full exhibit click here
About NAUTILUS, INC. (NYSE:NLS)
Nautilus, Inc. is a consumer fitness products company. The Company operates through two segments: Direct and Retail. The Direct segment offers products directly to consumers through television advertising, catalogs and the Internet. The Retail segment offers its products through a network of independent retail companies with stores and Websites located in the United States and internationally. The Company’s principal business activities include designing, developing, sourcing and marketing of cardio and strength fitness products and related accessories for consumer use, primarily in the United States and Canada, but also in international markets outside North America. It markets cardiovascular, strength and nutrition fitness products. The Company offers its products under the brands, including Nautilus, Bowflex, Octane Fitness, Schwinn and Universal. The Company’s warehousing and distribution facilities are located in Oregon and Ohio.
