Spire Global entered into a waiver and amendment to its current financing agreement with Blue Torch Capital. The waiver and amendment:
- Waives events of default under the financing agreement arising out of the maximum debt to EBITDA leverage ratio on June 30, 2024 being greater than the required ratio and the failure to deliver the financial statements for the fiscal quarter ended June 30, 2024
- Amends the financial covenants to provide immediate covenant relief from the leverage ratios in the financing agreement
- Provides for an amendment fee, which is 3.5% of the aggregate outstanding principal balance of the term loans on the effective date of the waiver and amendment and shall be paid-in-kind and added to the principal balance of the term loans
- Allows for a reduction in the amendment fee under certain refinance or pre-payment scenarios.
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The waiver and amendment also requires the company to make a $10 million payment toward the outstanding principal balance of the term loans under the financing agreement on Aug. 31, 2024. As of June 30, 2024, the company had cash, cash equivalents and short-term marketable securities of approximately $46 million.
This estimate of cash, cash equivalents and short-term marketable securities as of June 30, 2024 is preliminary and represents the most recent current information available to company management. The company’s condensed consolidated balance sheet as of June 30, 2024 and condensed consolidated statement of cash flows for the six months ended June 30, 2024 are not currently available due to the company’s ongoing review of accounting practices and procedures with respect to revenue recognition related to certain contracts in its “space as a service” business under applicable accounting standards and guidance and the potential existence of embedded leases of identifiable assets in the contracts, each as further described in the company’s current report on form 8-K filed with the Securities and Exchange Commission on Aug. 27, 2024. The company is working to issue full financial results as of and for the three and six months ended June 30, 2024 as soon as practicable.
