Evolv Technologies, a security technology company pioneering AI-based solutions designed to help create safer experiences, entered into a new $75 million credit facility with MidCap Financial, consisting of a $60 million tranched term loan ($30 million of which was drawn at close with an additional $30 million available to be drawn at the company’s sole discretion over the next two years) and a $15 million undrawn revolving credit facility. The company’s agreement includes a five-year maturity for both facilities. The annual interest rate on each is equal to SOFR plus a margin of 5.25%.
Proceeds from the new facility will be used for general corporate purposes, including in large part, to support growing long-term demand for the company’s subscription sales model.
“We’re pleased to partner with MidCap Financial on this new credit facility, which provides non-dilutive capital on favorable terms to support the continued growth of our business,” Chris Kutsor, chief financial officer of Evolv Technology, said. “We believe this facility further strengthens our balance sheet and provides enhanced flexibility to meet the increasing demand for our long-term subscription model. We’re excited to work with the MidCap Financial team as we enter our next stage of growth.”
Houlihan Lokey served as financial advisor to the company on the transaction.
