Allbirds, a global lifestyle brand, entered the following financing agreements, which are expected to optimize working capital and enhance financial flexibility to support the company’s long-term growth plans.
- A new $75 million asset-based revolving credit facility with Second Avenue Capital Partners, consisting of a $50 million tranche and a $25 million accordion feature. The new facility, which replaces the company’s previous $50 million revolving credit facility maturing in April 2026, has a maturity date of June 30, 2028 and is priced at SOFR plus 575 basis points.
- A sales agreement with TD Cowen, which may allow the company to sell, from time to time, up to $50 million of shares of Class A common stock through an At-the-Market (ATM) program.
These agreements are part of a comprehensive financing strategy that will help support Allbirds’ previously announced initiatives to reignite product and marketing, with the flow of new products beginning in the coming weeks.
“Our teams are laser-focused on executing our product, marketing and customer experience strategies,” Joe Vernachio, CEO of Allbirds, said. “We’re taking deliberate steps to strengthen our financial position as we enter this next chapter, while continuing to prioritize operational discipline and focus on driving long-term, profitable growth.”
“We’re pleased to have put in place a comprehensive financing package, including a new credit facility with a higher borrowing base and improved terms,” Annie Mitchell, chief financial officer of Allbirds, said. “Importantly, these actions enhance our capital structure and provide the Company with increased optionality as we pursue our growth plans. We are continuing to act with financial discipline as we focus on driving long-term profitable growth and building durable value for our shareholders.”
TD Cowen acted as exclusive financial advisor to Allbirds. Holland & Hart served as legal counsel to Allbirds. TD Cowen is also acting as sales agent to Allbirds. Allen Overy Shearman Sterling served as legal counsel to TD Cowen.
