RumbleOn entered into a $15 million senior secured credit facility with Hercules Capital.
Under the terms of the facility, $5 million will be funded at closing with the balance available in two additional tranches over the term of the facility, subject to certain operating targets. The facility has an initial 36-month maturity and initial 10.5% interest rate. Pursuant to the loan agreement, RumbleOn issued to Hercules, at closing, a warrant to purchase 81,818 shares of RumbleOn Class B common stock at an exercise price of $5.50 per share.
“We are excited to be working with Hercules, a leader in the industry with a long history of supporting innovative technology companies,” said Marshall Chesrown, CEO of RumbleOn. “We are pleased that we were able to work together to design a flexible credit facility structured to handle our growth capital needs for the foreseeable future. This financing underscores confidence that both RumbleOn and Hercules have in our business plan and provides RumbleOn additional flexibility to fund our accelerated growth.”
RumbleOn operates a capital light e-commerce platform allowing consumers and dealers to buy, sell, trade and finance pre-owned vehicles in one online location, with an emphasis on motorcycles and other powersports.
