Owlet Inc. (NYSE: OWLT), a leader in smart infant monitoring, recently announced a significant milestone in its financial journey. On June 26, 2026, the company entered into a new $25 million asset-based revolving credit facility with Wells Fargo Bank, National Association. This strategic move is designed to enhance liquidity and reduce borrowing costs, positioning Owlet for future growth and operational initiatives.

2. Improved Financial Position

The new credit facility replaces Owlet's existing asset-based credit facility and term loan, a change that is expected to significantly reduce the company's cost of capital. The terms of the new facility lower the applicable interest rate margin to SOFR plus 2.00% to 2.25%, a dramatic reduction from the previous SOFR plus 7.50% to 8.50%. This change results in a reduction of borrowing costs by at least 525 basis points, greatly improving Owlet’s financial landscape.

Enhanced Liquidity

As of the closing date of the refinancing, Owlet reported a total liquidity position of approximately $33.8 million. This figure includes cash and cash equivalents as well as the available borrowing capacity under the new credit facility. The enhanced liquidity will provide Owlet with the flexibility needed to invest in its strategic priorities while navigating the evolving landscape of pediatric health technology.

3. Strategic Implications

Amanda Twede Crawford, Chief Financial Officer of Owlet, highlighted the importance of this new credit facility, stating, “By replacing our previous debt structure with a more flexible revolving facility, we expect to meaningfully lower annual interest expense while enhancing liquidity and financial flexibility.” The ability to maintain a disciplined approach to capital allocation is paramount for Owlet as it continues to innovate and expand its offerings.

Support from Wells Fargo

Andy Hay, Executive Director at Wells Fargo, expressed confidence in Owlet’s growth strategy, saying, “We are pleased to support Owlet as it continues to execute on its growth strategy and we look forward to continuing our relationship.” This partnership underscores the bank's belief in Owlet's potential and future prospects.

4. Facility Details

The new credit facility provides Owlet with up to $25 million in borrowing capacity, with the option to increase commitments to as much as $35 million, subject to lender approval. The facility is set to mature three years from its closing date, giving Owlet ample time to leverage the resources effectively.

5. About Owlet Inc.

Founded in 2012, Owlet is the only company globally to provide U.S. FDA-cleared and internationally medically-certified wearable pediatric monitors. The company has gained the trust of over 2.5 million parents, offering hospital-grade technology designed for home use. Owlet combines advanced medical technology with user-friendly design, aiming to set a new standard in pediatric wellness.

6. Conclusion

The establishment of the $25 million revolving credit facility with Wells Fargo marks a pivotal moment for Owlet Inc. As the company continues to execute its growth strategy, this financial maneuver not only reduces borrowing costs but also enhances liquidity and operational flexibility. With a commitment to improve pediatric health monitoring, Owlet is well-positioned to continue its mission of providing every baby and family with the best possible start in life.

Original press release