Nautilus closed a five-year, $70 million senior secured credit facility comprised of a $55 million asset-based revolver loan and a $15 million term loan with Wells Fargo as administrative agent.

According to a related 8-K filing, the company will use proceeds from the facility to refinance its existing $40 million asset-based revolving facility with JPMorgan Chase Bank, pay transaction expenses, and for general corporate purposes.

“Our new credit facility provides us with additional financial flexibility to capitalize on the strength of our brand portfolio and positions us for sustainable profitable growth as a global technology-driven fitness company,” said CEO Jim Barr said. “Investing in our strategic initiatives, digital platform, connected fitness products, go-to-market capabilities and other market opportunities will enable us to deliver new and exciting solutions for our customers wherever they are in their fitness journey.”

The company’s existing credit facilities and agreements with JPMorgan and all guarantees and liens existing in connection with those facilities and agreements were terminated upon the closing of the transaction.

“We are very pleased to have partnered with Wells Fargo, which is known for its vast experience in the consumer and retail sectors,” Nautilus CFO Aina Konold said. “Securing this financing package strengthens our balance sheet and provides increased liquidity and greater financial flexibility. This will allow us to strategically allocate capital to facilitate the execution of our long-term growth strategies as we continue to stabilize our business and return it to profitable growth.”

OceanArc Capital Partners as Nautilus’ financial advisor for the transaction.

Nautilus manufacturers and distributes fitness equipment, including brands Bowflex, Modern Movement, Nautilus, Octane Fitness, Schwinn and Universal.