Skullcandy Case Summary
Skullcandy Inc. designs, markets, and distributes consumer audio products under the Skullcandy brand in the United States and internationally. The Company offers wireless and wired headphones, earbuds, speakers, and other mobile accessories. It sells its products through specialty, consumer electronics, sporting goods, mobility, and big box retailers, as well as through third-party distributors and its proprietary DTC channels (e.g. skullcandy.com)
After successfully navigating the post-COVID-19 macro environment, Skullcandy sought to refinance its bank credit facility to provide greater liquidity and flexibility to support the new management team’s business plans.
SLR Credit Solutions structured a split lien term loan secured by a first lien in all non-working capital assets of Skullcandy.
The term loan was supported by (i) stretch advance rates on the domestic and Canadian working capital assets, and (ii) advancing on the value of the Company’s intellectual property / brand.