NAUTILUS, INC. (NYSE:NLS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On March 29, 2019, Nautilus, Inc. (the “Company”) entered into a Credit Agreement by and among the Company, as borrower, JPMorgan Chase Bank, N.A. (“Chase Bank”), as administrative agent, lender and issuing bank (the “Credit Agreement”), to which Chase Bank agreed, among other things, to make available to the Company a revolving loan facility in the principal amount of up to $40,000,000 (as such amount may increase or decrease in accordance with the terms of the Credit Agreement). The principal amount of the loan will bear interest based on Chase Bank’s floating prime rate or adjusted LIBOR, plus an applicable margin. Debt under the Credit Agreement will mature, and all outstanding amounts thereunder will be payable, on March 29, 2022. Repayment of obligations under the Credit Agreement is secured by a pledge over all assets of the Company and certain of its subsidiaries. The Company’s existing credit facilities and agreements with Chase Bank terminated upon the closing of the transactions contemplated by the Credit Agreement.
The Credit Agreement contains customary covenants for financings of this type, including, among other terms and conditions, revolving availability subject to a calculated borrowing base, minimum cash reserves and minimum fixed charge cover ratio covenants, as well as limitations and conditions on the Company’s and each of its participating subsidiaries’ ability to: create, incur, assume or be liable for indebtedness; dispose of assets outside the ordinary course; acquire, merge or consolidate with or into another person or entity; create, incur or allow any lien on any of its property; make investments; or pay dividends or make distributions, in each case subject to certain exceptions. In addition, the Credit Agreement provides for certain events of default such as nonpayment of principal and interest when due thereunder, breaches of representations and warranties, noncompliance with covenants, acts of insolvency and default on indebtedness held by third parties (subject to certain limitations and cure periods).
This description of the Credit Agreement is a summary only and qualified in its entirety by reference to the text of the Credit Agreement, which will be filed as an exhibit to the Company’s Quarterly Report on Form10-Q for the period ended March31, 2019.
Item 1.02Termination of a Material Definitive Agreement.
The information in Item 1.01 is incorporated herein by reference.
Item 2.03. Creation of a Direct Financing Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information in Item 1.01 is incorporated herein by reference.
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.
