Bowlero Corp expands credit facility by $50 million By Investing.com

Bowlero Corp (NYSE:BOWL), a leader in the recreational services industry, has increased its credit capacity with an additional $50 million in revolving commitments, bringing the total credit line to $285 million. This financial maneuver, effective as of Monday, June 18, 2024, was detailed in a recent 8-K filing with the Securities and Exchange Commission (SEC).

The amendment, known as the Tenth Amendment, modifies the First Lien Credit Agreement originally dated July 3, 2017. The additional funds are provided under the same terms as the existing revolving commitments, including the interest rate and maturity date. As of the effective date, the Incremental Revolving Commitment remains undrawn.

This strategic financial step was taken in collaboration with JPMorgan Chase (NYSE:) Bank, N.A., which acts as the administrative agent, and other lenders involved in the original agreement. The Tenth Amendment and the Amended Credit Agreement have been filed with the SEC and are available for public reference.

Bowlero Corp, formerly known as Isos Acquisition Corp., is based in Mechanicsville, Virginia, and operates under the industrial classification of Amusement & Recreation Services. The company’s Class A common stock is listed on the New York Stock Exchange.

The increase in Bowlero’s credit facility provides the company with additional financial flexibility to support its ongoing operations and potential future growth initiatives. The full details of the Tenth Amendment can be found in the exhibits attached to the 8-K filing.

This article is based on a press release statement and the information provided is sourced from Bowlero Corp’s SEC filing.

In other recent news, Bowlero Corp. reported its third-quarter financial results, revealing a revenue of $337.7 million, closely meeting the low-end estimate set by analysts. However, the company’s adjusted EBITDA for the quarter was $122.8 million, falling short of the projected $132.5 million by 7.3%, a shortfall attributed to adverse weather conditions experienced in January.

Despite this, Bowlero has shown robust expansion efforts, adding 23 new locations in the fiscal year 2024 to date, with a plan to introduce four new builds in the forthcoming nine months. The company also recently acquired Raging Waves, Illinois’ largest water park, a move viewed positively by Noble Capital.

Analyst firms Noble Capital, Roth/MKM, and Oppenheimer have maintained their positive ratings on Bowlero’s stock but have adjusted their price targets following the third-quarter results. Noble Capital maintained an Outperform rating with a steady stock price target of $17.50, while Roth/MKM and Oppenheimer retained Buy and Outperform ratings respectively, but reduced their price targets to $15.

These revisions reflect the firm’s anticipation of long-term double-digit EBITDA growth and confidence in the company’s performance and prospects for future expansion within the entertainment industry.

InvestingPro Insights

In light of Bowlero Corp’s recent expansion of its credit capacity, a glimpse at the company’s financial metrics and market performance offers valuable context. According to InvestingPro data, Bowlero boasts a market capitalization of $2.04 billion and has maintained a gross profit margin of 28.02% over the last twelve months as of Q3 2024. This financial health is further underscored by the company’s positive revenue growth, which stood at 2.12% over the same period.

InvestingPro Tips suggest that Bowlero operates with a significant debt burden, which is an important consideration for investors given the company’s latest increase in credit facilities. On a more positive note, the company has enjoyed a strong return over the last month with a price total return of 15.13%. Moreover, analysts predict the company will be profitable this year, which aligns with the fact that Bowlero has been profitable over the last twelve months.

For investors looking to delve deeper into Bowlero Corp’s financials and market outlook, additional InvestingPro Tips are available. By visiting the dedicated page for Bowlero on InvestingPro, potential investors can access a comprehensive array of analytics and insights.

Readers can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable tips and data points to inform their investment decisions. In total, there are six additional InvestingPro Tips available for Bowlero Corp, providing a more nuanced understanding of the company’s financial landscape.

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