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Spire (NYSE:SR) Global, Inc. (NYSE:SPIR), a provider of space-based data and analytics with a market capitalization of $264 million, announced on Monday that it has amended its existing financing agreement to address recent financial challenges. According to InvestingPro data, the company currently operates with concerning liquidity metrics, including a current ratio of 0.4, indicating short-term obligations exceed liquid assets. The company entered into Waiver and Amendment No. 5 to its Financing Agreement on March 12, 2025, with Blue Torch Finance LLC and other lenders.
The amendment waives certain defaults related to Spire’s debt to EBITDA ratio, the delivery of financial projections for fiscal year 2025, and liquidity requirements. With an EBITDA of -$23.2 million in the last twelve months and revenue of $113 million, these amendments are crucial for the company’s financial flexibility. It also introduces a minimum EBITDA covenant, revises the recurring revenue leverage ratio, and allows the company to secure subordinate financing.
In addition, the amendment increases the interest margin by 2.50%, which will be accrued as payment-in-kind (PIK) interest and added to the principal balance of the term loans. A fifth amendment fee of $2.5 million will also be paid in kind, while an extension fee of $1 million will apply unless the financing agreement is terminated and all obligations are fulfilled by April 30, 2025. If not paid by this date, the extension fee will be added to the loan principal, with additional fees accruing every 30 days thereafter.
Spire has agreed to engage a liquidity management advisor by March 21, 2025, as part of the amendment terms. This move suggests that the company is taking steps to manage its liquidity more effectively in light of its current financial position.
The announcement follows a series of amendments dating back to the original Financing Agreement from June 13, 2022. This latest amendment reflects ongoing negotiations between Spire Global and its financiers as the company navigates through its financial covenants. For investors interested in monitoring Spire’s financial health and accessing detailed analysis, InvestingPro offers comprehensive financial metrics and real-time updates, including exclusive ProTips and detailed financial health scores. The platform’s Pro Research Report provides deep-dive analysis of Spire Global among 1,400+ US stocks.
Investors and stakeholders are advised that the details of the Waiver and Amendment are outlined in Exhibit 10.1 filed with the SEC. This filing provides further insight into the terms and conditions of the amended agreement and Spire Global’s commitments to its lenders.
In other recent news, Spire Global reported a notable 29% year-over-year increase in its third-quarter 2024 revenue, reaching $28.6 million, although it faced an operating loss of $6.1 million. The company achieved positive free cash flow of $5.1 million, an important metric for investors. Spire Global is also in the process of selling its maritime business for $241 million, with the transaction expected to close in the coming weeks. Analysts from Stifel maintained a Buy rating on Spire Global, setting a price target of $20, while Canaccord Genuity raised its price target to $15, also reaffirming a Buy rating. These ratings reflect confidence in Spire Global’s updated financials and business model despite recent accounting changes. The company has restated its financials, shifting revenue recognition for certain contracts, which may affect its reported earnings. Additionally, Spire Global is undergoing a leadership change, with Teresa Conder set to become CEO in 2025. These developments are part of Spire Global’s ongoing strategy to focus on innovation and growth in the space services sector.
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