SmartRent, a provider of smart home and smart building automation for property owners, managers, developers, homebuilders and residents, entered into a $75 million senior secured revolving credit facility with a five-year term. Silicon Valley Bank, serving as lead arranger and administrative agent, and J.P. Morgan provided the facility.
The facility carries an interest rate based on the term SOFR rate plus a spread of 1.85% to 2.35% subject to certain liquidity measures. It also includes a provision for an incremental facility of up to $75 million pursuant to certain conditions and on the same terms, including the same pricing and maturity date as the revolving facility. The revolving facility is secured by substantially all of SmartRent’s assets and guaranteed by each of the company’s material domestic subsidiaries.
“This credit facility marks another milestone for SmartRent in our journey as the premier platform for smart home technologies,” Lucas Haldeman, chairman and CEO of SmartRent, said. “The pricing, covenants and size of the facility reflect the strength of our business model and the visibility of our organic growth potential. Our strong balance sheet is further enhanced by the incremental capital provided by the revolver. We believe that our capital position enables us to execute on our organic growth initiatives and M&A strategy as we endeavor to create value for our customers and shareholders. We are grateful for the support of our banking partners and look forward to working with them in the future as our company’s capital needs continue to evolve.”
