EL SEGUNDO, Calif. - The Beachbody Company, Inc. (NYSE: BODi), a prominent health and wellness subscription service, has announced the sale of its Van Nuys production facility for $6.2 million. The facility's net carrying value was reported at $4.8 million as of December 31, 2023. Concurrently with the sale, Beachbody has entered into a five-year lease agreement for the same property, with options to extend the lease twice, each for an additional three years.
The proceeds from this transaction have been directed towards a $5.5 million partial prepayment of the company's Term Loan. This financial activity, including the sale and prepayment, will be reflected in the financial statements for the quarter ending March 31, 2024.
Additionally, Beachbody has successfully negotiated an amendment to its Term Loan agreement with its lender. This amendment results in a reduction of the minimum liquidity financial covenant from $19 million to $17 million until March 31, 2024, and a subsequent decrease from $24 million to $22 million from April 1, 2024, until the loan's maturity date.
CEO Carl Daikeler expressed the company's strategic move as a step toward improving liquidity and enhancing the company's balance sheet as part of its turnaround efforts.
This development comes as Beachbody, known for its fitness and nutrition programs such as P90X, Insanity, and 21-Day Fix, continues to navigate the competitive fitness and nutrition industry landscape. The company has been a key player in the market for over two decades, offering products and services aimed at supporting customers in their health and fitness journeys.
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