Nautilus, Inc. plans to reduce its workforce by 140
positions, including 80 spots at the company's headquarters. The rollback will
cause the company’s expense line to be diminished by “more than $10
million on an annualized basis.” The adjustments equate to approximately
9% of the company's workforce and approximately 12% of its annualized
compensation. Severance and benefits packages based upon years of service are
being offered to affected staff.


Last week, the company also signed a proposal letter to
expand its debt facility by a third to a $150 million loan facility. It expects
to close the new 5-year facility by the end of the year. In the interim, the
company is negotiating an amendment and has executed an agreement to secure its
existing five-year, $125 million unsecured debt facility with its existing
lenders led by Bank of America.