The Beachbody Company, Inc. sold its Van Nuys, CA production facility, which had a net carrying value of $4.8 million, on December 31, 2023, for $6.2 million. Simultaneous with the sale, the company entered into a five-year lease of the facility, with two options to extend the lease for three years each.
Beachbody said in a release that it used the net proceeds from the sale to make a partial prepayment on its Term Loan of $5.5 million. The company will record the amounts related to the sale of the facility and the partial prepayment in the quarter ended March 31, 2024.
Beachbody also entered into an Amendment of its Term Loan with its lender, which reduced the minimum liquidity financial covenant from $19 million to $17 million through March 31, 2024, and reduced the minimum liquidity financial covenant from $24 million to $22 million from April 1, 2024, through the maturity date of the Term Loan.
“The sale and leaseback transaction demonstrates our commitment to improving our liquidity position as we execute on our turnaround,” commented Carl Daikeler, CEO of The Beachbody Company, Inc. “We are intent on evaluating options that will optimize our balance sheet going forward.”
Image courtesy The Beachbody Company
