Cricut, Inc. entered into a new Credit Agreement on October 22, 2026, replacing its previous credit facility established on August 4, 2022. The new agreement, dated October 22, 2026, is a five-year, senior secured, multicurrency revolving credit facility with aggregate commitments of $300.0 million. The facility matures on October 22, 2031, and is governed by BMO Bank N.A., which serves as the administrative agent.
The new Credit Facility allows Cricut to use the funds for working capital needs and general corporate purposes, including permitted acquisitions and share repurchases. The agreement includes specific sublimits for a letter-of-credit facility of $35.0 million and a foreign-currency sublimit of $30.0 million. Borrowings under the facility bear interest at either the Adjusted Term SOFR Rate or the Alternate Base Rate, plus a margin ranging from 0.125% to 2.00%, based on the company's Net Leverage Ratio. The company is also required to pay a commitment fee on undrawn amounts at a rate between 0.125% and 0.225%.
The agreement imposes financial covenants requiring Cricut to maintain a maximum Net Leverage Ratio of 3.00 to 1.00 and a minimum Interest Coverage Ratio of 3.00 to 1.00. Additionally, the company must maintain a maximum Net Leverage Ratio of 2.5 to 1.00 on a pro forma basis for share repurchases and dividends. The obligations under the Credit Facility are guaranteed by the company's loan-party subsidiaries and secured by substantially all of the company's assets.
In connection with the new agreement, Cricut terminated its Prior Credit Agreement on October 22, 2026. As of the termination date, no principal amount was outstanding under the prior agreement, and no material early termination penalties were incurred.
