Evolv Terminates SVB $75 Million Debt Financing Analyzed

JH
John Honovich
•Published Apr 04, 2023 13:03 PM

**** *****,******* ****** **** (***) ******, ******** * ***** ********* ******. Now, ** ** ********* * ******** traded ******** *******, ***** ************.

IPVM Image

**** ***** ** *** **** ********* *** ******* ** **** ******* "purchased *************"**** *** ******* ****** ******** ***** price ****** *** ******** **** ********.

** **** ****, ** ******* **** this *********** ***** *** *** ***** for ***** ***** *** ******* ** SVB.

**********

** ******** ****,***** ********* $** ******* ** ***-******** Debt ********* **** ******* ****** ****, ****** ** **** ****:

** ******* **** ******* **** ******* Valley **** **** ****** ** ** offset *** **** ** ****** ** fund ***** ******** ********* **** *** contract ************,enabling ** ** ******* * ******* **** **** ***** while more effectively supporting our long-term growth plans [emphasis added]

**********

*****'* ******* ** **** **** ********* has * ******* *******:

  • *** ******* ** ******* *********** ******* of ****. ** ****, *** *******, they ****** **** **** $** *******, or ******* **% ** *** **** they *** ** ***** *** ****.
  • *** ******* ***** *** ****** ** effectively ***** (**** **** **** "**** ************") ****** **** *** *** ********. The ******, *********, ** **** ***** makes *** **** ******* ** *** long **** ** ******** **** *** month (*.*., ~$*,*** *******, ******* *******, versus $*,*** *******, ~$**,*** *******).

Downsides ** **** ************

*******, ***** *** * ********* ** at ***** ***** **** ******** **** "pure ************" *****:

  • ****** **** ****: **** ** *** is ****** ********* **** **** **** make **** ***** ** *** **** term (*.*. ***** *, *, *, etc.), **** ********* *** **** **** since *** ******** ***** **** ** be ***** *** **** *** ** front *** ***** **** ** ***** up *****.
  • **** ***** ****: ***** ***** *** 4-year *********, ** ** *** ***** year * ****, *********, ***** **** generate **** ***** ******* **** ** they ******* "******** *************". ***** *** risk ******** *** *** **** ***** of *****, ** *****'* ***** ** higher **** **** ********** ** **** and ******, ***** ***** **** ***** from **** ****. *** ***** ********** *********** ******** **** ***** *** had, **** ** * **** ****.

*** *** $** ******* ****** ******** thereby ******** ***** * *** ** migrate ** **** ************ ***** ********** its **** **** (***** ** ********* given *** ***** ** ***** **** ~70% ***** **** ** **** ****** and *** ******* *** *** ********* to ********** ********* *********).

$30M **** **********

*** **** * *** ****** ***** signing *** ****, ******** ********* *** ******* * ***** crisis, ***** *** ********* ** *** terminated **** ****** *********,** * *** ****** ******:

*** ******* (*) **** ****** ** its ****** *** ****** ** ********* the *********** ***** *** **** *** Credit ********* *** (**) *********** *** excess **** *** ** ***** ******** (the “********”). *** ******** ******** ** an ***** ** ******* ***** *** 2022 *** ****** *********. **** *** occurrence ** **** ***** ** *******, First ******** ***** ****, *** *** not ******** **, ******* *** *********** under *** **** *** ****** ********* immediately *** *** *******. ***** ******** did *** **** **** *********** ********* such ***** ** *******. ************* *** of *** *******’* **** ** ********* held ******* ** ***** ********.

** ***** **, ****, ***** ** any ************ ** *** *********** ***** the **** *** ****** *********, *** Company **** ** **** *** ** its *********** ***********, ********* *** *********, interest *** ********** **** *** ***** the **** *** ****** *********, *** the **** *** ****** ********* *** thereby **********.The ********* ****** ****** *** $**.* *******. *** ****** ** ******** ****** *** $*.* *******. *** ********** **** **** ********* ** *% ** *** ********* ****** repaid. [emphasis added]

No *********** *** **********

*** ************ **** *** ******* *** new **** ******** ********* ***, ***** could ** *********** ********** ** *** more ********* ***** *** ************ *******.

*** ******* ** ***, *** ******* increase ** ******** *****, *** *** tightening ** ******* ********* **** ******** the ****, ** *********, ** ******** alternative **** *********. *******, *** ******** for ***** ** *** **** ** is ***** **** ****** ******* (*** roughly **** ** *** ***** *****). As **** ** **** *** ********* with ******** ***** *** ** **** as ****** ********* ******** ** **********, this **** ******* ********* *** ***** sales.

Cash **** ****

*********** *** *** ****** ********* ****** Evolv's **** ******** ** ******* $** million. **** **, ** ******** ** the ~$** ******* ** **** **** expected ** **** **** **** ****** the *** ******* (***** ********** ******* that **** ***** ****** **** **** by ***** **** ** *** *** line).

*******

** ******, **** ** ** *********** risk *** ***** *** ** **** put ******* ******** ** *****'* *****, as ** *********** *** ***** ***** the ******* ******** *** **** ********. However, ** **** ** *** ******* can **** ******* ***** *****, ************ with *******, **** *** **** * replacement ****** ******** (****** ** ***** terms) ** ***** *** ****** (******, for ***** ****, *********, **** **** achieve * *** ****** ***** *****).

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