Flux Power Holdings, a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, secured a new $15.0 million credit facility from Gibraltar Business Capital (“GBC”) to fund working capital and to refinance its existing credit facility with Silicon Valley Bank (“SVB”).
Gibraltar Business Capital is an industry leader in asset-based lending for middle-market businesses. GBC has become a leader in its industry by leveraging its experience in a variety of business sectors, innovation in developing customized credit solutions and expertise in working with private equity and other financial partners.
The $15.0 million credit facility is designed for working capital needs, as well as the repayment of an existing credit facility with SVB. The interest rate on this new facility is tied to the Secured Overnight Financing Rate (“SOFR”) plus five and one half of one percent (5.50%) per annum. The facility is secured by the existing assets of the Company, matures on July 28, 2025, and includes no warrants. The agreement allows the Company to increase the facility to $20.0 million, in $1.0 million or greater increments, at the Company’s request subject to approval by GBC. The Company has also chosen to work with Bank of America for cash management and other operational banking services.
“GBC is a reliable financing partner to help increase our borrowing power and access to capital, and we are pleased to now be partnering with them on our revolving line of credit,” said Chuck Scheiwe, Chief Financial Officer of Flux Power. “This facility has been used to repay our existing credit facility with SVB, and along with our existing cash, is intended to help meet our anticipated capital resources to fund planned operations to meet the demands of our aggressive growth trajectory for the foreseeable future. We also appreciate the assistance and support of Bank of America to put this facility in place and be our banking partner going forward.”
Ron Dutt, Chief Executive Officer of Flux Power, added, “The terms of the new facility are favorable to Flux Power and enhances our borrowing capacity at attractive rates to provide greater financial flexibility to invest in internal initiatives and support our next phase of growth. This marks another important milestone for our Company as we continue our strategic long-term growth objectives and strive to create sustainable, long-term value for our shareholders. We appreciate the strong support and confidence provided by GBC.”
Scott Winicour, CEO of Gibraltar Business Capital, commented, “Gibraltar Business Capital is pleased to provide a reliable, flexible working capital solution to Flux Power to enable further growth and to advance their goal of driving adoption of clean, safe, and innovative energy solutions. We are honored to have been selected as Flux Power’s strategic financing partner for the next phase of their journey.”