Owlet's Innovative Debt Refinancing: Paving the Path Forward

Owlet Completes Successful Public Offering and Debt Refinancing

Owlet, Inc. (NYSE: OWLT), renowned for its pioneering innovations in smart infant monitoring, proudly announces the successful closure of its underwritten public offering, raising approximately $11.6 million. This undertaking demonstrates Owlet's commitment to enhancing its corporate structure and operational capabilities, ensuring the company remains a leader in the rapidly evolving digital health sector.

Details of the Public Offering

The public offering consisted of 3,135,136 shares of the Company’s Class A common stock, each priced at $3.70 before deductions for underwriting discounts and commissions. All shares were sold by Owlet, which shows confidence from investors in the company's vision and future prospects.

Utilization of Proceeds

Owlet plans to channel the net proceeds from this offering into various corporate necessities, such as capital expenditures, working capital, and administrative expenses. This strategy underscores Owlet's intention to maintain robust growth momentum.

Debt Refinancing Initiatives

In tandem with the public offering, Owlet has embarked on a significant debt refinancing initiative, involving a term loan agreement with Western Technology Investment and a revolving line of credit with Mountain Ridge Capital. The debt refinancing is aimed at bolstering Owlet’s financial positioning and operational flexibility.

Structure of Financing

The term loan agreement allows for a total facility of up to $15 million. It consists of an initial tranche of $10 million, with $7.5 million already funded, and $2.5 million available until late 2024. There is also a second tranche of $5 million accessible post mid-2025, provided certain conditions are met. The credit agreement offers Owlet a revolving credit line which can grow from $15 million to $20 million after one year, further solidifying its access to necessary capital.

Role of Titan Partners Group

Titan Partners Group has played a crucial role in this financial maneuver, acting as the sole bookrunner for the offering while also advising Owlet on its debt refinancing strategies. Their expertise has proven invaluable as Owlet navigates these complex financial waters.

Public Offering Compliance

Owlet's offering follows strict regulatory compliance, facilitated through an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Interested parties can access the necessary documentation via the SEC’s platform to stay informed about the transaction details.

About Owlet, Inc.

Owlet is revolutionizing parenting through its digital health infant monitoring platform. This small-cap healthcare leader provides FDA-authorized wearable technology combined with an integrated high-definition visual and audio camera to equip parents with real-time insights into their child’s health. Such tools empower parents to optimize wellness and ensure their children's sleep quality.

Impact on Families

Since its inception in 2012, Owlet’s solutions have been embraced by over 2 million families globally, resulting in one of the largest datasets focused on consumer infant health and sleep. The company is committed to bridging the gap between hospital-level care and in-home monitoring, striving to provide new insights that enhance parental strategies in safeguarding their children's health.

Frequently Asked Questions

What was the purpose of Owlet's public offering?

The funds raised are intended for general corporate purposes, including capital expenditures and working capital.

How much gross revenue did Owlet raise from the public offering?

Owlet raised approximately $11.6 million from the offering.

Who facilitated Owlet's debt refinancing?

Titan Partners Group acted as the sole bookrunner and financial advisor for the refinancing.

What is the structure of Owlet's new debt facilities?

Owlet’s new facilities include a term loan agreement for up to $15 million and a revolving credit facility that can increase to $20 million.

How has Owlet impacted parenting?

Owlet's monitoring platform has transformed the parenting experience by providing real-time health insights and improving the well-being of children through innovative technology.

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