GoPro Raises $50 Million Secured Term Loan

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[{"type":"text","content":"SAN MATEO, Calif., Aug. 4, 2025 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced it entered into a second lien credit agreement (the \"Second Lien Credit Agreement\") providing for a secured term loan in an aggregate principal amount of $50 million from Farallon Capital Management, L.L.C., and certain of its affiliates (\"Farallon\"). The company closed the debt financing as part of a strategic initiative to bolster its balance sheet and placed approximately $94 million in escrow to repay the convertible debt maturing in November 2025.\n\n \n \n \n \n \n \n\n \n\"This debt financing underscores our disciplined approach to capital management and reinforces our commitment to achieving long-term financial strength,\" said Brian McGee, GoPro's CFO and COO. \"Farallon's understanding of our business needs allowed us to develop a solution that enhances our balance sheet in a way that is intended to provide the flexibility we need to meet our near-term obligations while continuing to execute on the business.\"\nGoPro's obligations under the Second Lien Credit Agreement are guaranteed by certain of GoPro's domestic subsidiaries and are secured by a second lien security interest in substantially all of the assets of GoPro, including its intellectual property, and a pledge of shares in certain of GoPro's subsidiaries.\nThe Second Lien Credit Agreement contains customary representations, warranties and affirmative and negative covenants, including financial covenants. The negative covenants include restrictions on the incurrence of liens and indebtedness, certain investments, dividends, stock repurchases and other matters, all subject to certain exceptions. The financial covenants require (a) GoPro to maintain liquidity (defined as unrestricted cash, cash equivalents and availability under the Revolving Credit Agreement (as defined below) of at least $40,000,000, subject to a step-down to $30,000,000 upon achievement of a total leverage ratio below 1.00:1.00; (b) GoPro not to have EBITDA (as defined in the Second Lien Credit Agreement) of (i) less than $10,000,000 for the fiscal quarter ending December 31, 2025, (ii) less than $10,000,000 for the period of four consecutive fiscal quarters ending March 31, 2026, (iii) $22,000,000 for the period of four consecutive fiscal quarters ending June 30, 2026, (iv) $30,000,000 for the period of ...

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