Warby Parker enters agreement for $120 million five-year revolver

By Wendy Van Sickle

Columbus, Ohio, Feb. 23 – Warby Parker Inc. and wholly owned subsidiary Warby Parker Retail, Inc. entered into a credit agreement on Feb. 21 that provides for an up to $120 million revolver with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

An accordion feature allows the borrowers to expand their borrowing capacity by $55 million, subject to some conditions.

The credit agreement matures on Feb. 21, 2029.

Proceeds may be used for working capital and other general corporate purposes.

Borrowings bear interest at adjusted SOFR plus a margin ranging from 165 basis points to 190 bps, depending on senior net leverage ratio. There is a facility fee of 20 bps to 25 bps per annum on the same basis.

A financial maintenance covenant takes effect only when the borrowers have $30 million or more borrowed under the credit facility. At such times, the borrowers will be required to maintain a maximum consolidated senior net leverage ratio of 3x, which will be tested on the last day of each fiscal quarter.

Citibank, NA is also a member of the lending group.

In connection with the new credit agreement, the borrowers terminated their credit agreement dated Sept. 30, 2022 with Comerica Bank as administrative agent.

Warby Parker is an online retailer of prescription glasses, contact lenses and sunglasses. It is based in New York City.

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