GoPro has entered into a credit agreement worth $250 million with JPMorgan Chase Bank, show 8-k documents filed late last month.
The move follows a busy, yet rocky, period for the video giant, in which it acquired mobile editing apps Splice and Replay in a move which the CEO Nicholas Woodman said would see the manufacturer offer “the fastest and most enjoyable mobile editing experience” to date.
Having lost a big chunk of its share value since the start of 2016 and reportedly had to cut 7% of its staff, the firm has now teased that it will re-invigorate business with the debut of a drone camera – dubbed the Karma – in the first half of this year.
The credit agreement reads adds that “the Borrowers and lenders may increase the total commitments under the Credit Facility to up to $300.0 million, subject to certain conditions.”
The firm’s financials for 2015 saw gross margin up 16.2% year-on-year, but did suggest the business will need to develop its offering to combat rapidly slowing growth. GoPro revealed that it shipped 6.6 million video devices in 2015, up 27% year-over-year.
At the time GoPro Founder and CEO, Nicholas Woodman said:”In 2015, we recorded 16% year-over-year revenue growth and the fourth quarter represented the second highest revenue quarter in the company’s history. However, growth slowed in the second half of the year and we recognize the need to develop software solutions that make it easier for our customers to offload, access and edit their GoPro content.”
Since then the firm’s fortunes have taken a turn for the worse, with a drastic decline in share value hitting in January. The cube-shaped Session camera, which has been subject to substantial price cuts following lower than expected demand, has been part blamed for the downturn.
In its financials the firm has estimated restructuring expenses for Q1 2016 of $5 million to $10 million.
Last month Brian McGee took over as CFO following Jack Lazar retiring.
“The past two years have been incredibly rewarding and I am honored to have worked with Nick and the rest of the GoPro team. I will miss them all and I am excited that Brian is taking over the CFO role,” said Lazar.
“Jack has been a great leader who helped GoPro navigate the path to becoming a publicly-traded company. While he will be missed, we are also grateful to have Brian and a strong bench of leaders running Finance at GoPro,” added Nick Woodman.