Lulu’s Fashion Lounge entered into a loan and security agreement with White Oak Commercial Finance, as administrative agent, and the lenders party thereto. The agreement is comprised of an asset-based revolving credit facility with a $20 million commitment, a $5 million uncommitted accordion and a $1 million sublimit for letters of credit. The agreement matures on Aug. 14, 2028.
“We’re pleased to partner with White Oak on this financing agreement, which strengthens our liquidity position and provides Lulus with the financial flexibility to continue executing against our strategic priorities,” Crystal Landsem, CEO and interim chief financial officer of Lulu’s, said. “We remain focused on achieving our sustainable growth objectives, delivering attainable luxury for our customers and driving value for our shareholders.”
The initial funding of the agreement will occur immediately, and the proceeds will be used in part to repay approximately $6 million outstanding under the company’s amended credit agreement with Bank of America. Effective immediately, and inclusive of the repayment to Bank of America, the company will have $10 million of outstanding borrowings under the agreement.
In connection with entering into the agreement, the company will repay and fulfill all outstanding obligations to Bank of America under the 2021 credit agreement.
