Owlet, Inc. 8-K

What Happened
Owlet, Inc. (the Company) and its subsidiary Owlet Baby Care, Inc. (OBCI) announced a Credit Agreement with Wells Fargo Bank, N.A., effective June 26, 2026. The agreement establishes an asset-based revolving credit facility with a $25.0 million commitment (expandable to $35.0 million) and a maturity three years from the effective date. On June 26, 2026, OBCI drew $17,063,000 under the facility and used the proceeds in part to repay and extinguish its prior line of credit with ABL OPCO LLC (the ABL Lenders) and its term loan with WTI Fund X/XI (the WTI Lenders).

Key Details

• Lender: Wells Fargo Bank, N.A.; Borrower: Owlet Baby Care, Inc.; Guarantor: Owlet, Inc.
• Revolving Commitment: up to $25,000,000, with borrower option to request increases up to $35,000,000 (in ≥$5M increments, lender approval required).
• Initial draw: $17,063,000 on June 26, 2026; proceeds used to repay prior ABL and WTI loans.
• Pricing & term: interest = daily SOFR + 2.00% or 2.25% (based on availability), maturity = 3rd anniversary of the effective date (June 26, 2029).
• Covenants & security: requires maintaining at least $7.5 million liquidity and certain minimum EBITDA thresholds; obligations are guaranteed by Owlet and secured by substantially all personal property and a pledge of OBCI’s stock.
• Events of default include customary cross-defaults; lender remedies include acceleration, foreclosure on collateral and pursuing guaranty.

Why It Matters
This transaction replaces Owlet’s previous ABL and term loan arrangements with a single revolving facility and provides immediate liquidity through the $17.063M draw. The facility is secured and contains affirmative and restrictive covenants (including a $7.5M liquidity floor and EBITDA tests) that could limit corporate flexibility if covenants are breached. Investors should note the new interest pricing tied to SOFR, the three‑year maturity, and the scope of collateral and guaranty — all of which affect the company’s capital structure, liquidity profile, and potential downside in the event of financial stress.

Filed on Form 8-K dated July 1, 2026.