#Marathon#eVTOL#Workhorse#Steve Burns

Marathon Asset Management injects $35mn into Workhorse Group

hotmaillogin
|Jan 3|magazine6 min read

Cincinnati technology company Workhorse Group Inc announced this week it has secured US$35mn in financing from New York-based global credit event-driven manager Marathon Asset Management. Workhorse, which is involved in using sustainable, cost-effective electric mobility solutions to disrupt the US transportation sector, will reportedly use the funding for “current working capital, parts acquisitions to fulfill existing and future customer purchase orders and contracts as well as to satisfy full repayment of the senior secured notes incurred in July 2018.”

The financing will be delivered in two stages: the first being a $10mn lump sum for the payment of the July 2018 senior secured notes, and the second to be established as a revolving credit facility for the financing of current and future purchase orders as needed.

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Workhorse CEO Steve Burns said on Wednesday: “"Marathon is the right strategic partner for Workhorse's current capital needs, and we plan to leverage their experience, size and resources to further support our growth as a company. This agreement provides meaningful, near-term funding that will go directly toward building and delivering vehicles to customers in 2019. Additionally, we have repaid, in full, our previous debt obligations from July, which will remove all covenants associated with that arrangement, including the obligation to sell our eVTOL aircraft, SureFly. Going forward, our primary goal for both current and future capital initiatives is to leverage the best available financing solutions that will provide liquidity and favorable economics."

Marathon, which has an estimated $15bn in assets under management “is uniquely positioned to quickly create innovative financing solutions that fit within Workhorse's existing capital structure and its business objectives.”