Aterian Signs A $50 Million Credit Facility With MidCap Financial Trust
27 December 2021 - 11:00PM
Aterian, Inc. (Nasdaq: ATER) (“Aterian”) announced today that it
has signed an asset backed credit facility with MidCap Financial
Trust (“MidCap”), which is managed by a subsidiary of Apollo Global
Management, Inc. The credit facility has a three year term and
gives Aterian access to up to $50 million in total credit,
consisting of $40 million in commitments with an accordion facility
of an additional $10 million. On the closing, Aterian has repaid in
cash and satisfied all outstanding obligations under its existing
$25.0 million term loan with High Trail.
Aterian’s Chief Executive Officer, Yaniv Sarig,
commented, “This credit facility is a testament to MidCap’s
understanding of our business, strong expertise in E-Commerce and
their commitment to support growth oriented companies. We are also
pleased to announce that we have repaid our remaining loan to High
Trail with cash proceeds from the MidCap facility. In the past five
months, our team has worked tirelessly to turn around a challenging
disruption to our business caused by the impact of the supply chain
crisis on our costs of shipping. We are entering 2022 with a
stronger balance sheet, preferred shipping rates from our logistics
partners and exciting new initiatives to resume organic and M&A
driven growth.”
MidCap’s Product Head
of Asset Based Lending, Garrett Fletcher, commented “We have a
great deal of familiarity with Aterian stemming from financing the
company at an earlier stage in its development. We have
confidence in the management team and are delighted that they chose
to partner with us again as we look forward to continuing to
support the company’s growth and development.”
About MidCap FinancialMidCap
Financial is a middle market focused specialty finance firm that
was formed in 2008. As of June 30, 2021, Midcap Financial
provides management or other services for over $31.6
billion of commitments, of which approximately $5.0 billion is
managed by Midcap Financial Services Capital Management LLC, a
registered investment adviser. MidCap Financial refers to MidCap
FinCo Designated Activity Company, a designated activity company
limited by shares incorporated under the laws of Ireland, and its
subsidiaries, including MidCap Financial Trust. MidCap Financial is
managed by Apollo Capital Management, L.P., a subsidiary of Apollo
Global Management, Inc. MidCap Financial Services, LLC provides
sourcing, due diligence and portfolio management services to MidCap
Financial. Loans made or arranged by MidCap Financial Trust
pursuant to a California Finance Lenders Law License. For more
information about MidCap Financial, please
visit http://www.midcapfinancial.com.
About Aterian, Inc.Aterian,
Inc. (Nasdaq: ATER), is a leading technology-enabled consumer
products platform that builds, acquires, and partners with
best-in-class e-commerce brands by harnessing proprietary software
and an agile supply chain to create top selling consumer products.
The Company’s cloud-based platform, Artificial Intelligence
Marketplace Ecommerce Engine (AIMEE™), leverages machine learning,
natural language processing and data analytics to streamline the
management of products at scale across the world’s largest online
marketplaces, including Amazon, Shopify and Walmart. Aterian has
thousands of SKUs across 14 owned and operated brands and sells
products in multiple categories, including home and kitchen
appliances, health and wellness, beauty and consumer
electronics.
Forward Looking StatementsAll
statements other than statements of historical facts included in
this press release that address activities, events or developments
that we expect, believe or anticipate will or may occur in the
future are forward-looking statements including, in particular, the
statements regarding our growth plans for 2022, both organically
and through M&A. These forward-looking statements are based on
management’s current expectations and beliefs and are subject to
uncertainties and factors, all of which are difficult to predict
and many of which are beyond our control and could cause actual
results to differ materially and adversely from those described in
the forward-looking statements. These risks include, but are not
limited to; those related to the global shipping disruptions, our
ability to continue as a going concern, our ability to meet
financial covenants with our lenders, our ability to create
operating leverage and efficiency when integrating companies that
we acquire, including through the use of our team’s expertise, the
economies of scale of our supply chain and automation driven by our
platform; those related to our ability to grow internationally and
through the launch of products under our brands and the acquisition
of additional brands; those related to the impact of COVID-19,
including its impact on consumer demand, our cash flows, financial
condition and revenue growth rate; our supply chain including
sourcing, manufacturing, warehousing and fulfillment; our ability
to manage expenses, working capital (including for PPE products)
and capital expenditures efficiently; our business model and our
technology platform; our ability to disrupt the consumer products
industry; our ability to grow market share in existing and new
product categories, including PPE; our ability to generate
profitability and stockholder value; international tariffs and
trade measures; inventory management, product liability claims,
recalls or other safety and regulatory concerns; reliance on third
party online marketplaces; seasonal and quarterly variations in our
revenue; acquisitions of other companies and technologies, our
ability to continue to access debt and equity capital (including on
terms advantageous to the Company) and the extent of our leverage
and other factors discussed in the “Risk Factors” section of our
most recent periodic reports filed with the Securities and Exchange
Commission (“SEC”), all of which you may obtain for free on the
SEC’s website at www.sec.gov.
Investor Contact:
Ilya Grozovsky
Director of Investor Relations & Corp. Development
Aterian, Inc.
ilya@aterian.io
917-905-1699
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