California-based GoPro, Inc. announced it had secured a $50 million term loan through a second lien credit agreement with Farallon Capital Management, L.L.C. and its affiliates. The financing is part of a broader strategy to bolster the company’s balance sheet and prepare for the repayment of its convertible debt maturing in November 2025. To that end, GoPro placed approximately $94 million in escrow.
“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 Chief Financial and Operating Officer.
The loan is secured by a second-priority lien on nearly all of GoPro’s assets, including intellectual property, and is guaranteed by several domestic subsidiaries. In parallel, GoPro amended its existing credit agreement with Wells Fargo to allow for the new arrangement and granted Wells Fargo a first-priority lien on its IP-related assets.
As part of the deal, GoPro will also issue warrants to Farallon for 11,076,968 shares of Class A common stock at an exercise price of $1.25 per share. The warrants are immediately exercisable and expire on Aug. 4, 2035.
The agreement includes standard financial covenants related to liquidity, Ebitda and asset coverage ratios. Additional details are available in GoPro’s SEC filings.
