#United States #San Mateo #GoPro #Financial #Farallon

GoPro Secures $50 Million Term Loan

In an effort to bolster its financial standing and ensure operational flexibility, GoPro, Inc. (NASDAQ: GPRO) revealed on August 4, 2025, that it has entered into a significant secured term loan agreement amounting to $50 million. This funding comes from Farallon Capital Management, L.L.C., a well-respected global investment firm. The deal, termed the "Second Lien Credit Agreement," aims to fortify GoPro’s balance sheet while equipping the company with the necessary capital to meet its imminent financial commitments.

Brian McGee, the Chief Financial Officer and Chief Operating Officer of GoPro, emphasized that this loan reflects the company’s prudent approach towards capital management. He noted, “This debt financing underscores our disciplined approach to capital management and reinforces our commitment to achieving long-term financial strength.” With this financing arrangement, GoPro has placed roughly $94 million in an escrow account specifically to address convertible debt that is set to mature in November 2025.

Details of the Agreement

The Second Lien Credit Agreement offers a range of guarantees from GoPro’s domestic subsidiaries and is secured by a second lien on nearly all of GoPro’s assets, which includes its intellectual property and shares in certain subsidiaries. The agreement also stipulates various customary representations, warranties, and both affirmative and negative covenants. Notably, negative covenants impose restrictions on incurring additional debt, issuing dividends, and making certain investments, although exceptions may apply under specified conditions.

Financial covenants included in the deal require GoPro to maintain a liquidity level of at least $40 million—this will decrease to $30 million if the company achieves a total leverage ratio below a specified threshold. Furthermore, GoPro is tasked with meeting specified EBITDA targets over several fiscal quarters, demonstrating the lender's focus on financial performance as a condition of the loan.

Enhancing Future Prospects

To facilitate the Second Lien Credit Agreement, GoPro also amended its existing credit facility with Wells Fargo Bank to ensure compliance and grant first-priority security interests in its intellectual property assets to the administrators and lenders involved in the agreement.

In an additional move to strengthen its relationship with Farallon Capital, GoPro has agreed to issue warrants allowing Farallon to purchase up to 11,076,968 shares of Class A Common Stock at an exercise price of $1.25 per share. These warrants will be immediately exercisable and will remain valid until August 4, 2035, enhancing Farallon’s interest in GoPro’s growth prospects.

The strategic financial maneuvering is part of GoPro’s broader vision of enhancing operational resiliency and growth. By solidifying its financial foundation, GoPro aims to continue executing its business strategy while navigating the challenges that often accompany dynamic market conditions.

Looking Ahead

As GoPro continues to enhance its financial position, it remains committed to innovation and growth in the action camera and consumer electronics market. The company has gained recognition for its work environment and has been noted as one of the best places to work by publications like Outside Magazine and U.S. News & World Report.

With advancements in product offerings and an enhanced capability to meet financial obligations, GoPro seeks to maintain its leadership in the action sports sector and deliver value to its shareholders. The company invites interested parties to keep abreast of its developments through its official website and social media channels.

For greater details about the specifics of the Second Lien Credit Agreement, investors and analysts can reference GoPro's current report filed with the U.S. Securities and Exchange Commission (SEC). This proactive financial strategy illustrates GoPro’s commitment not only to sustaining its legacy but also to innovating for the future.