Flux gets $15 million two-year revolving loan facility with Gibraltar

By Devika Patel

Knoxville, Tenn., Aug. 3 – Flux Power Holdings Inc. and subsidiary Flux Power, Inc. settled a $15 million senior secured revolving loan facility with Gibraltar Business Capital, LLC on July 28, according to an 8-K filed with the Securities and Exchange Commission.

Borrowings accrue interest at SOFR plus 550 basis points, which may be increased to SOFR plus 850 bps in the event of a default.

The revolver matures on July 28, 2025, but the maturity can automatically be extended for one year by paying a 0.75% fee on the revolving commitment before maturity.

The company may also increase the revolver by up to $5 million in up to five $1 million increments.

Borrowings may be prepaid in whole or in part at any time with an exit fee of 2% of the revolving commitment if prepaid in the first year after settlement and an exit fee of 1% of the revolving commitment if prepaid after the first year.

The exit fee may be waived if prepaying debt with lender Bank of America.

The lithium battery and energy storage company is based in Vista, Calif.

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