Loan & DebtAug 6, 2026, 04:21 PM
Beachbody Amends Credit Agreement, Adjusts Covenants
AI Summary
The Beachbody Company, Inc. entered into Amendment No. 2 to its Credit Agreement on August 3, 2026, adjusting several financial covenants to enhance flexibility. Key changes include a reduced minimum cash threshold for covenant testing, elimination of the billings fixed charge coverage ratio, and adjusted minimum digital subscriptions and total billings targets. The interest rate was also set at SOFR Rate plus 9.00% until maturity. The company stated this amendment supports growth strategies and reflects a strengthening balance sheet, with $36.6 million cash as of March 31, 2026, exceeding its $23.6 million debt.
Key Highlights
- Credit Agreement Amendment No. 2 entered into on August 3, 2026.
- Minimum cash threshold for covenant testing decreased from ~$29.6M to $22.5M.
- Billings fixed charge coverage ratio covenant has been eliminated.
- Minimum liquidity level increased from $15M to $18M, then to $16M by March 2027.
- Minimum digital subscriptions reduced to 650,000 (until Dec 2026) and 550,000 thereafter.
- Three Month Total Billings Target increased from 90% to 92.5% of forecasted.
- Interest rate set at SOFR Rate plus 9.00% until maturity.
- Cash position of $36.6M on March 31, 2026, exceeded $23.6M debt.
Price Impact
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