Warby Parker enters agreement for $100 million five-year revolver

By Wendy Van Sickle

Columbus, Ohio, Oct. 4 – Warby Parker Inc. and wholly owned subsidiary Warby Parker Retail, Inc. entered into a credit agreement on Sept. 30 that provides for an up to $100 million revolver with Comerica Bank as lead arranger, bookrunner and 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 $75 million, subject to some conditions.

The credit agreement matures on Sept. 30, 2027.

At closing, about $4.1 million was drawn under the credit agreement in the form of letters of credit.

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

Borrowings bear interest at the Bloomberg Short-Term Bank Yield index rate plus a margin ranging from 150 basis points to 180 bps, depending on senior net leverage ratio. There is a facility fee of 15 bps per annum.

A financial maintenance covenant takes effect only when the borrowers first borrow $60 million or more under the credit facility. Starting then and at all times thereafter, 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.

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

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