GoPro Raises $50 Million Secured Term Loan

Core Viewpoint - GoPro, Inc. has secured a $50 million second lien credit agreement with Farallon Capital Management to strengthen its balance sheet and address upcoming convertible debt obligations [1][2]. Financial Details - The second lien credit agreement involves a secured term loan of $50 million and includes placing approximately $94 million in escrow for convertible debt repayment due in November 2025 [1]. - GoPro is required to maintain liquidity of at least $40 million, which may reduce to $30 million upon achieving a total leverage ratio below 1.00:1.00 [3]. - The financial covenants stipulate minimum EBITDA requirements, starting with $10 million for the fiscal quarter ending December 31, 2025, and increasing to $40 million for any period ending on or after December 31, 2026 [3]. Security and Guarantees - Obligations under the second lien credit agreement are guaranteed by certain domestic subsidiaries and secured by a second lien on substantially all of GoPro's assets, including intellectual property [2][3]. - An amendment to the existing credit agreement with Wells Fargo was made to allow the entry into the second lien credit agreement and to grant first-priority security interest in GoPro's intellectual property [4]. Warrants Issuance - GoPro has agreed to issue warrants to Farallon or its affiliates for the purchase of 11,076,968 shares of Class A Common Stock at an exercise price of $1.25 per share, expiring on August 4, 2035 [5].