The Beachbody Company, Inc. has amended certain financial covenants of its $50 million term loan with Blue Torch Capital to add financial flexibility.
“We felt it was appropriate to amend the terms of our revenue covenant with Blue Torch Capital to better align the loan with our profit and free cash flow objectives. The amendments reduce the revenue minimum to quarterly revenue of $100 million for each quarter through March 31, 2024, then to $120 million for each quarter thereafter. These changes reflect the company’s focus on becoming cashflow positive”, said Carl Daikeler, BODi’s co-founder and CEO.
“Our new business model is driven by our turnaround plan, which is about maximizing profitability and cash generation from our multiple revenue streams versus growth at all costs. We are committed to creating a revenue mix with higher profitability channels that produce increases in cash as a priority. The Blue Torch team has been great to work with while amending the terms of our agreement to reflect their support of these objectives,” said Mark Goldston, BODi’s executive chairman.
“Given our existing cash position and progress over the past 6 quarters, we agreed to prepay $15 million of the term loan’s principal and increase the minimum liquidity amount to $20 million through March 31, 2024, and then to $25 million thereafter,” said Marc Suidan, BODi’s CFO. “We believe the net result is a very positive development. The amendments align with building a profitable and sustainable business and provide us with the flexibility to put our turnaround plan into place to focus on cash generation.”
Beachbody is a fitness and media company based in El Segundo, CA. Brands include Beachbody On Demand, Team Beachbody, MYXfitness, and Openfit.
Photo courtesy MYXfitness
