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SELECTED TRANSACTION DETAILS
JPMorgan Chase Agents $120MM Credit Facility for Warby Parker
Tuesday, February 27, 2024

Lenders/Participants JPMorgan Chase Bank [Administrative Agent]
Structure Revolving Credit Facility
Amount $120.000 Million
Borrower(s) Warby Parker, Inc.
Description The Credit Agreement provides for a revolving credit facility with borrowing capacity up to $120,000,000 at any time outstanding. The Credit Agreement also contains an uncommitted accordion feature pursuant to which the Borrowers can expand their borrowing capacity by $55,000,000 for maximum borrowings of $175,000,000, subject to certain conditions. The Credit Agreement matures on February 21, 2029, and the Borrowers may borrow, repay and reborrow amounts under the revolving credit facility until the Maturity Date. At closing, there were no borrowings under the Credit Agreement. Proceeds of the borrowings under the Credit Agreement are intended to be used for working capital and other general corporate purposes in the ordinary course of business. Borrowings under the Credit Agreement are secured and will bear interest at a rate equal to, at the Borrowers’ option, either (a) the greater of the prime rate (as defined in the Credit Agreement) or 2.5%, plus an applicable margin of 0.65% to 0.90% or (b) adjusted SOFR (as defined in the Credit Agreement), plus an applicable margin of 1.65% to 1.90%. The applicable margin shall be determined based on the Borrowers’ consolidated senior net leverage ratio. The Borrowers are also obligated to pay other customary fees for a credit facility of this size and type, including an unused commitment fee of 0.20% to 0.25% per annum, depending on the Borrowers’ consolidated senior net leverage ratio, and fees associated with letters of credit. In connection with the Credit Agreement, the Borrowers also paid the lenders certain upfront fees. The obligations of the Borrowers under the Credit Agreement are secured by first-lien security interests in substantially all of the assets of the Borrowers. In addition, the obligations are required to be guaranteed in the future by certain additional domestic subsidiaries of the Company. The Credit Agreement contains a financial maintenance covenant, which only applies while borrowings exceed $30 million, and requires the Borrowers to maintain a maximum consolidated senior net leverage ratio of 3.00:1.00, which will be tested on the last day of each fiscal quarter.
Industry Consumer Products
Location NY
Related Tags Consumer Products, JPMorgan Chase Bank, Warby Parker




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