1847 Goedeker Inc. Secures Strategic Capital Through Entry Into $140 Million Secured Credit Agreement With Bank of America
May 11 2022 - 8:00AM
Business Wire
Agreement Includes $100 Million Term Loan and
$40 Million Revolving Credit Facility With Competitive Terms
Capital to Support Strategic and Corporate
Initiatives, Including Prospective Growth Investments, Capital
Structure Enhancements and Share Repurchases
1847 Goedeker Inc. (NYSE American: GOED) ("Goedeker" or the
"Company"), a content driven and technology enabled shopping
destination for appliances, furniture and home goods in the U.S.
household appliances market, today announced that it has entered
into a $140 million credit agreement (the “Credit Agreement”) with
Bank of America, N.A. as administrative agent. Goedeker intends to
use the Credit Agreement to fund future strategic and corporate
initiatives, including prospective growth investments, capital
structure enhancements and share repurchases under its board of
directors’ previously authorized program.
Under the terms of the Credit Agreement, Goedeker will have
access to a $100 million term loan and a $40 million revolving
credit facility, which includes a $2 million swingline subfacility
and a $2 million letter of credit subfacility. Each of the loans
include market terms and will mature in May 2027. The proceeds of
the term loan were applied, among other uses, to prepay the
obligations in full under the Company’s existing first lien term
loan credit agreement.
Albert Fouerti, Chief Executive Officer and Director of
Goedeker, commented:
“It is a testament to the strength of our business and its
long-term trajectory that we are able to enter into this Credit
Agreement right now. We have access to affordable, non-dilutive
capital to support future initiatives, such as building out our B2B
model through strategic partnerships, expanding our fulfillment
capabilities and enhancing our technology stack. We are also well
positioned to continue optimizing our capital structure, including
by executing on our share repurchase program and any authorized in
the future. We look forward to working with our rebuilt management
team to capture additional market share and drive towards our goal
of a billion dollars in sales in the coming years.”
About Goedeker
Goedeker is a content-driven and technology-enabled shopping
destination for appliances, furniture and home goods. Since its
acquisition of Appliances Connection, Goedeker has evolved into a
growth-oriented ecommerce platform with a distinct offering of
core, premium, luxury and private label brands that can be accessed
through a convenient point-and-click experience. The Company's
priorities include offering an expansive selection, high-touch
product expertise and reliable shipping from its expanding,
nationwide fulfillment network. Learn more at
www.Goedekers.com.
Forward Looking Statements
This press release contains "forward-looking statements" that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as "anticipate," "believe," "contemplate," "could,"
"estimate," "expect," "intend," "seek," "may," "might," "plan,"
"potential," "predict," "project," "target," "aim," "should,"
"will", "would," or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on the Company's
current expectations and are subject to inherent uncertainties,
risks and assumptions that are difficult to predict. Further,
certain forward-looking statements are based on assumptions as to
future events that may not prove to be accurate. You should not
place undue reliance on forward-looking statements because they
involve known and unknown risks, uncertainties and other factors,
which are, in some cases, beyond the Company’s control and which
could materially affect results. Factors that may cause actual
results to differ materially from current expectations include,
among other things, those described more fully in the section
titled "Risk Factors" of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2021, filed with the Securities and
Exchange Commission. Forward-looking statements contained in this
announcement are made as of this date, and the Company undertakes
no duty to update such information except as required under
applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220511005319/en/
Goedeker Investor Relations Greg Marose / Ashley Areopagita
ir@goedekers.com
1847 Goedeker (AMEX:GOED)
Historical Stock Chart
From Sep 2024 to Oct 2024
1847 Goedeker (AMEX:GOED)
Historical Stock Chart
From Oct 2023 to Oct 2024