Beachbody amends covenants of $50 million term loan via Blue Torch

By Wendy Van Sickle

Columbus, Ohio, July 26 – Beachbody Co. amended the financial covenants of its $50 million term loan with Blue Torch Capital, according to a news release.

“We felt it was appropriate to amend the terms of our revenue covenant with Blue Torch Capital to better align the loan with our profit and free cash flow objectives. The amendments reduce the revenue minimum to quarterly revenue of $100 million for each quarter through March 31, 2024, then to $120 million for each quarter thereafter. These changes reflect the company’s focus on becoming cashflow positive,” said Carl Daikeler, co-founder and chief executive officer of Beachbody, in the release.

“Our new business model is driven by our turnaround plan, which is about maximizing profitability and cash-generation from our multiple revenue streams versus growth at all costs. We are committed to creating a revenue mix with higher profitability channels that produce increases in cash as a priority.”

Beachbody agreed to prepay $15 million of the term loan’s principal and increase the minimum liquidity amount to $20 million through March 31, 2024, and then to $25 million thereafter.

Based in El Segundo, Calif., the company combines digital fitness, nutrition and mindset content.

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