Key Highlights

  • The company secured a $200.0 million revolving credit facility with JPMorgan Chase Bank as administrative agent.
  • Financial covenants include a maximum net leverage ratio of 3.25 to 1.00 and a minimum fixed charge coverage ratio of 1.25 to 1.00.
  • The credit facility matures in July 2031 and replaces a prior $115.0 million term loan facility.

IPO Completion Details

Neutron Holdings (NASDAQ: LIME), the parent company behind shared electric scooter operator Lime, finalized its initial public offering on July 2, 2026.

Credit Facility Terms

On the same day, Neutron Holdings entered into a $200.0 million revolving credit facility with JPMorgan Chase Bank serving as administrative agent. The facility is backed by liens on substantially all company assets, including intellectual property and equity interests in certain subsidiaries. No funds have been drawn under the new credit line as of the agreement date.

Financial Covenants Explained

The credit agreement imposes strict financial maintenance requirements. The company is also required to sustain a fixed charge coverage ratio of at least 1.25 to 1.00 for any four-quarter period ending on that date.

Interest Rate Structure

Borrowings under the facility will accrue interest based on either Term SOFR or a base rate. Term SOFR loans carry an interest rate ranging from 1.50% to 2.25%, while base rate loans range from 0.50% to 1.25%. The applicable margin is determined by the company’s total net leverage ratio, with additional fees including a commitment fee of 0.25% to 0.40% per annum.

Prior Debt Repayment

Proceeds from the IPO were used to fully repay a $115.0 million senior secured term loan facility established under a 2023 credit agreement. The repayment terminated all obligations under the prior facility and released associated liens, including a guarantee previously provided by Uber Technologies.

Governance Updates

Neutron Holdings also implemented amended and restated bylaws effective July 2, 2026. The updated corporate governance documents were approved by the board and stockholders ahead of the IPO.

Facility Maturity and Flexibility

The new credit facility allows for repayments and reborrowings through its maturity in July 2031. Letters of credit issued under the agreement will incur a fronting fee not exceeding 0.125% per annum. The structure provides Neutron Holdings with financial flexibility as it scales operations post-IPO.

FAQs

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.