The company hopes that the expanded credit facility will strengthen its financial position and provide flexibility for future strategic equity sales.
Shoe company Allbirds has announced new financing agreements. These are expected to optimize working capital and enhance financial flexibility to support the company’s long-term growth plans, the company communicated.
A new $75 million asset-based revolving credit facility with Second Avenue Capital Partners, consisting of a $50 million tranche and a $25 million accordion feature, replaces the company’s previous $50 million revolving credit facility maturing in April 2026. The new facility has a maturity date of June 30, 2028, and is priced at SOFR plus 575 basis points.
A sales agreement with TD Cowen, which may allow the company to sell up to $50 million of shares of Class A common stock through an ATM program, is also part of the financing strategy.
These agreements will support Allbirds’ initiatives to reignite product and marketing, with new products beginning to flow in the coming weeks. To support new products, the company launched a marketing strategy earlier this year. It is based on the Allbirds by Nature brand and aims to build long-term brand equity. The company is focused on creating a standout customer experience to drive increased engagement and sales. A store refresh program began in Q2 of 2025, and a website redesign is scheduled for July.
“Our teams are laser-focused on executing our product, marketing, and customer experience strategies,” said Joe Vernachio, CEO. “We’re taking deliberate steps to strengthen our financial position as we enter this next chapter while continuing to prioritize operational discipline and focus on driving long-term, profitable growth.”
The financing strategy announced today provides Allbirds with access to supplemental capital, increased liquidity, and additional financial flexibility to support its growth plans. As of March 31, 2025, Allbirds had $39.1 million in cash and cash equivalents on its balance sheet and remains in strong financial condition.
CFO Annie Mitchell added, “We’re pleased to have put in place a comprehensive financing package, including a new credit facility with a higher borrowing base and improved terms. Importantly, these actions enhance our capital structure and provide the company with increased flexibility as we pursue our growth plans. We are continuing to act with financial discipline as we focus on driving long-term, profitable growth and building durable value for our shareholders.”
TD Cowen was Allbirds’ exclusive financial advisor. Holland & Hart LLP was its legal counsel. TD Cowen is also its sales agent. Allen Overy Shearman Sterling US LLP was its legal counsel.
A registration statement registering $22,500,000 of the Class A common stock to be sold under the ATM program has been filed with the SEC but is not yet effective. These securities may not be sold or offered until the statement becomes effective. This press release is neither an offer to sell nor a solicitation to buy these securities. No sales will occur in any jurisdiction where such would be unlawful prior to registration or qualification under applicable securities laws.
