Nautilus, Inc., a fitness solutions company, designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer and commercial use in the United States, Canada, Europe, the Middle East, Africa, and internationally. The company operates in two segments, Direct and Retail and offers specialized cardio products, treadmills, ellipticals, bike products, home gyms, dumbbells, barbells, and kettlebells primarily under the Nautilus, Bowflex, Octane Fitness, and Schwinn brands, as well as fitness digital platform under the JRNY brand.
The COVID-19 pandemic created profound demand for, and challenging supply of, personal fitness equipment. Given this dynamic, Nautilus decided to bolster its liquidity profile to (i) bridge the company to a more normal supply/demand environment and (ii) continue to invest in new products and its connected fitness apps, including JRNY.
SLR Credit Solutions provided a $30,000,000 split lien term loan secured by all non-working capital assets of Nautilus. The incremental liquidity was created by (i) lending deeper into the domestic working capital assets (2nd lien), (ii) leveraging certain foreign jurisdictions (1st lien) and (iii) leveraging the value of the Company’s intellectual property / brand value (1st lien).