Newegg gets $100 million revolver due 2024, issues credit notes

By Marisa Wong

Los Angeles, Aug. 27 – Newegg Inc. entered into a credit agreement on Aug. 20 with East West Bank as agent, arranger and bookrunner for an up to $100 million revolver due Aug. 20, 2024, according to a 6-K filing with the Securities and Exchange Commission.

The maximum revolving advance amount may be increased up to $150 million.

The revolver includes a $30 million letter-of-credit sublimit, which can be used to issue standby and trade letters of credit, and a $20 million sublimit for swingline loans.

Loans bear interest at Libor plus an applicable margin of 225 basis points. The applicable margin will be downward adjusted to 200 bps if average daily excess availability is greater than or equal to 50% of the loan cap.

The company must also pay on a quarterly basis an unused commitment fee of 15 bps.

In addition, the credit facility requires the company to maintain some minimum financial ratios and maintain an operation banking relationship with the financial institutions.

In connection with the new credit agreement, the borrowers collectively issued three revolving credit notes to lenders Cathay Bank, Preferred Bank and East West Bank for a total principal of $100 million and a swing loan note for a principal sum of $20 million to swing loan lender East West Bank.

Newegg had a previous revolving credit agreement with East West Bank as agent that matured on July 27, 2021. No balance was outstanding under the prior revolver as of its expiration.

The online retail company is based in City of Industry, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.