Boxed Secures New Financing

Online retailer Boxed has signed off on a new financial agreement that will infuse the company with up to $20 million in funding. 

The deal includes a second lien secured term loan facility that provides $10 million of funding to Boxed at closing. Additionally, the facility also provides an additional $10 million in funding, subject to the completion of certain milestones in a process for sale of the company.

Concurrently, Boxed also entered into an agreement to its existing first lien debt facility with funds and accounts managed by BlackRock, that reduces its minimum liquidity covenant by $5 million.

As part of the above transactions, approximately $32 million of Boxed’s existing convertible notes previously held by the lender have been exchanged into new loans secured by a second lien security interest in substantially all of the assets of the company and its subsidiaries. The lender has issued warrants to purchase 14 million shares of the company’s outstanding common stock at an initial exercise price of $3 per share.

“This new financing will provide greater flexibility for us to continue to execute on our strategic vision and the strategic alternatives process,” said Chieh Huang, co-founder and CEO of Boxed. “We value our existing relationships with funds and accounts managed by BlackRock and the lender and are excited to continue to work closely with them.”

Additional information about the financing transaction with the lender and the amendment to the company’s first lien debt facility with BlackRock, including copies of the definitive agreements, will be provided in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.