Online used motorcycle retailer RumbleOn has closed a $15 million senior secured credit facility with Hercules Capital, Inc., a specialty finance company focused on providing customized debt financing for companies in technology and life sciences-related markets, RumbleOn announced in a press release.
Under the terms of the facility, $5 million will be funded at closing, upon which Hercules will receive a warrant, which in this case gives the right to purchase 81,818 shares of RumbleOn at a fixed price.
“We are excited to be working with Hercules, a leader in the industry with a long history of supporting innovative technology companies,” Marshall Chesrown, chief executive officer of RumbleOn, said in a press release. “We are pleased that we were able to work together to design a flexible credit facility structured to handle our growth capital needs for the foreseeable future.
The credit facility provides RumbleOn with additional flexibility to fund its accelerated growth, he added.
RumbleOn seeks to grow in 2018 and has made plans to exceed $100 million in revenue by yearend. The e-commerce retailer secured a floorplan line of credit for $25 million from Ally Bank in February in order to purchase pre-owned motorcycles for resale to consumers. RumbleOn has partnerships with automotive retailer Sonic Automotive and MotoLease LLC.
