Marathon Asset Management provided a three-year $35 million facility to Workhorse Group, a technology company which provides sustainable and cost-effective electric-mobility solutions to the transportation sector. The financing consisted of a $10 million lump sum and a $25 million revolving credit facility.
The facility was secured by a first priority lien on all assets and will be used for current working capital, parts acquisitions to fulfill existing and future customer purchase orders and contracts as well as to satisfy full repayment of the senior secured notes incurred in July 2018.
The first tranche lump sum will be used principally to satisfy repayment of the notes, while the revolver will be drawn down as necessary.
“Marathon is the right strategic partner for Workhorse’s current capital needs, and we plan to leverage their experience, size and resources to further support our growth as a company,” said Workhorse CEO Steve Burns. “This agreement provides meaningful, near-term funding that will go directly toward building and delivering vehicles to customers in 2019. Additionally, we have repaid, in full, our previous debt obligations from July, which will remove all covenants associated with that arrangement, including the obligation to sell our eVTOL aircraft, SureFly. Going forward, our primary goal for both current and future capital initiatives is to leverage the best available financing solutions that will provide liquidity and favorable economics.”
Duane Hughes, Workhorse president and COO, added, “Completing these financial transactions are additional key steps in our long-term capital strategy. We plan to implement these measures and other near-term initiatives in the coming months to help drive continued growth in both sales and profitability.”
Based in New York, Marathon is an opportunistic global credit event-driven manager with approximately $15 billion in assets under management. The firm pursues credit through a broad spectrum of investments in global corporate credit, distressed and special situational credit, structured credit, emerging markets and leveraged loans.
