Boxlight obtains up to $68.5M term loan, DDTL for FrontRow acquisition

Boxlight Corp. obtained up to $68.5 million in financing to fund an acquisition of FrontRow Calypso LLC. Whitehawk Finance LLC is the lender.

According to the Dec. 31, 2021, financing agreement, Boxlight and subsidiaries received an initial term loan of $58.5 million and up to $10 million as a delayed draw term loan for additional working capital.

In addition to financing the FrontRow acquisition, proceeds repay existing debt to Sallyport Commercial Finance LLC and Lind Global Asset Management LLC. Proceeds also fund fees and transaction costs, and provide working capital.

Of the initial loan, $8.5 million is subject to repayment on Feb. 28, 2022, with quarterly interest payments beginning March 31, 2022. The remaining $50 million, plus any delayed draw loans, are due on Dec. 31, 2025.

Interest on the term loans is Libor+10.75%, falling to Libor+10.25% provided that after June 30, 2022, the senior leverage ratio is below 2.25x. The company is subject to a borrowing base.

The lender received equity and warrants as part of the transaction.

California-based FrontRow manufactures school technology systems for intercom, bells, mass notification, lesson sharing, and AV control. Boxlight Corp. provides interactive technology solutions for businesses and educational environments under brands Clevertouch and Mimio.