Lovesac Secures New $150M Credit Facility

TL;DR

Lovesac just locked in $150M in new debt to fuel growth.

AI Summary

On July 29, 2024, The Lovesac Company entered into a new credit agreement with its existing lenders, which includes a $100 million revolving credit facility and a $50 million term loan. This agreement replaces their previous credit facility and provides additional financial flexibility. The company expects this to support its growth initiatives.

Why It Matters

This new credit facility provides Lovesac with enhanced financial flexibility, potentially enabling them to pursue growth opportunities and manage operations more effectively.

Risk Assessment

Risk Level: medium — While new financing can be positive, the company is taking on additional debt, which carries inherent financial risks.

Key Numbers

• $150M — New Credit Facility (Total amount of the new revolving credit facility and term loan combined.)
• $100M — Revolving Credit Facility (Amount available for ongoing operational needs.)
• $50M — Term Loan (Amount for specific financing needs.)

Key Players & Entities

• The Lovesac Company (company) — Registrant
• July 29, 2024 (date) — Date of earliest event reported
• $100 million (dollar_amount) — Revolving credit facility amount
• $50 million (dollar_amount) — Term loan amount

FAQ

From the Filing

0001013762-24-002912.txt : 20240731 0001013762-24-002912.hdr.sgml : 20240731 20240731070504 ACCESSION NUMBER: 0001013762-24-002912 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20240729 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240731 DATE AS OF CHANGE: 20240731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Lovesac Co CENTRAL INDEX KEY: 0001701758 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FURNITURE STORES [5712] ORGANIZATION NAME: 07 Trade & Services IRS NUMBER: 320514958 STATE OF INCORPORATION: DE FISCAL YEAR END: 0204 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38555 FILM NUMBER: 241159851 BUSINESS ADDRESS: STREET 1: TWO LANDMARK SQUARE, SUITE 300 CITY: STAMFORD STATE: CT ZIP: 06901 BUSINESS PHONE: 203-817-2279 MAIL ADDRESS: STREET 1: TWO LANDMARK SQUARE, SUITE 300 CITY: STAMFORD STATE: CT ZIP: 06901 8-K 1 ea0210255-8k_thelovesac.htm CURRENT REPORT false 0001701758 0001701758 2024-07-29 2024-07-29 iso4217:USD xbrli:shares iso4217:USD xbrli:shares     UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549   FORM 8-K   CURRENT REPORT   Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934   Date of Report (Date of earliest event reported): July 29, 2024   THE LOVESAC COMPANY (Exact name of registrant as specified in its charter)   Delaware   001-38555   32-0514958 (State or other jurisdiction of incorporation)   (Commission File Number)   (I.R.S. Employer Identification No.)   Two Landmark Square , Suite 300 Stamford , Connecticut 06901 (Address of Principal Executive Offices, and Zip Code)   ( 888 ) 636-1223 Registrant’s Telephone Number, Including Area Code   Not Applicable (Former name or former address, if changed since last report)     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):   ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)   ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)   ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))   ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))   Securities registered pursuant to Section 12(b) of the Act:   Title of each class   Trading Symbol(s)   Name of each exchange on which registered Common stock, par value $0.00001 per share   LOVE   The NASDAQ Stock Market LLC   Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).   Emerging growth company ☐   If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐             Item 1.01 Entry into a Material Definitive Agreement.   Ninth Amendment to Credit Agreement   On July 29, 2024, The Lovesac Company (the “Company” or “Lovesac”) entered into a Ninth Amendment to the Credit Agreement (the “Amendment”) with the lenders party thereto (the “Lenders”) and Wells Fargo Bank,