iPower, an online hydroponic equipment supplier and retailer in the United States, entered into a three-year, $25 million secured revolving credit facility with JPMorgan Chase Bank. The credit facility also provides an accordion feature to borrow an additional $25 million for a total of up to $50 million.
“This new credit facility is an important component of our capital structure, as it provides us with the flexibility to fund our growth and execute on our strategic initiatives,” Lawrence Tan, CEO of iPower, said. “With a strengthened balance sheet, we look forward to bolstering our product research and merchandising expertise to launch new in-house SKUs, including our own nutrients brand, as well as various next-gen product design initiatives that incorporate smart functionality and sensory capabilities.”
Borrowings under the new secured credit facility bear interest at LIBOR plus 2% to 2.25%, subject to availability based primarily on iPower’s eligible accounts receivable and inventory.
