Daily News: July 9, 2019

B3D Upsizes XpresSpa Facility to $7MM

XpresSpa Group has improved its capital structure and significantly strengthened its financial condition through a series of debt and equity transactions, including increasing its credit facility with B3D to $7 million.

This new round of funding provides the company the necessary working capital for operations, new initiatives to improve the business and capital to continue to renovate spas and build five new spas by the end of 2019.

“We are grateful to our senior secured lender B3D, for its continued commitment to our business and for the support and flexibility it has continued to provide to us by its willingness to once again restructure our senior secured credit facility. We are also pleased to receive our second investment from Calm, while also extending and broadening our strategic partnership,” said Doug Satzman, XpresSpa’s CEO.

B3D, XpresSpa’s senior secured lender, has agreed to amend the company’s $6.5 million senior secured note. The amendment extends the senior secured note’s maturity by 17 months to May 31, 2021, increases the principal amount by $500,000, reduces the interest rate from 11.24% to 9.00%, provides the company the option to conserve cash and pay interest in common stock. This amendment will enable the company to deploy more capital to operations and eliminate its obligation to pay down or refinance the current principal amount of $6.5 million by December 31, 2019.

XpresSpa Group is a health and wellness holding company. XpresSpa Group’s core asset, XpresSpa, is a leading airport retailer of spa services and related products, with 55 locations in 23 airports globally.