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Aterian Strengthens Balance Sheet, Extends Credit Facility with MidCap Financial

February 27, 2024, 07:45 AM
Filed Under: Consumer Products

Aterian extended its asset backed credit facility with MidCap Financial, which is managed by a subsidiary of Apollo Global Management, Inc.

The Credit Facility term has been extended to December 2026 and gives Aterian access to $17.0 million in current commitments which can be increased, subject to certain conditions, to $30.0 million. The Credit Facility extension reduces the minimum liquidity financial covenant from a peak of $15.0 million to $6.8 million of cash on hand and/or availability in the Credit Facility. The extension fee was less than $0.1 million.

Aterian’s Co-CEO and CFO, Arturo Rodriguez, commented, “We are excited to continue our long-term relationship with MidCap Financial, which started in 2017. MidCap Financial has been impressed by our recent initiatives to focus, simplify and stabilize our core business. This extension level sets the credit facility for 2024 while providing plenty of room for future growth.” Mr. Rodriguez continued, “With the credit facility’s flexibility on our liquidity covenants and, coupled with our existing cash, we have further strengthened Aterian’s balance sheet as we continue on our path towards adjusted EBITDA profitability in the second half of 2024.”

MidCap Financial Portfolio Head of Asset Based Lending, Brett Robinson, commented, “MidCap Financial has a long-standing relationship with the management team at Aterian and we are pleased to extend our existing credit facility with the company as they continue to execute on their business plans.”

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