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Flux Power secures $15m GBC credit facility

August 4, 2023

California-headquartered lithium-ion energy storage system developer Flux Power has secured a new $15 million credit facility from Gibraltar Business Capital (GBC) to fund working capital and to refinance its existing credit facility with Silicon Valley Bank (SVB).

The interest rate on the new credit facility is tied to the Secured Overnight Financing Rate (SOFR) plus 5.50% per annum. The facility is secured by the existing assets of the company, matures on July 28, 2025, and includes no warrants. The agreement allows the company to increase the facility to $20 million, in $1 million or greater increments, at the company’s request subject to approval by GBC. Flux Power has also chosen to work with Bank of America for cash management and other operational banking services.

Ron Dutt, chief executive officer of Flux Power, said: “The terms of the new facility are favourable to Flux Power and enhances our borrowing capacity at attractive rates to provide greater financial flexibility to invest in internal initiatives and support our next phase of growth. This marks another important milestone for our company as we continue our strategic long-term growth objectives and strive to create sustainable, long-term value for our shareholders. We appreciate the strong support and confidence provided by GBC.”

Scott Winicour, CEO of Gibraltar Business Capital, added: “Gibraltar Business Capital is pleased to provide a reliable, flexible working capital solution to Flux Power to enable further growth and to advance their goal of driving adoption of clean, safe, and innovative energy solutions. We are honoured to have been selected as Flux Power’s strategic financing partner for the next phase of their journey.”