iPower Inc. (NASDAQ: IPW) announced that it had fully repaid its asset‑based lending facility (ABL) with JPMorgan Chase Bank, N.A., which was settled on December 7, 2025. The company used a bridge loan at 6.5% interest—carrying no fees—to retire the ABL and is now terminating the associated Uniform Commercial Code (UCC) liens.
The repayment reduces iPower’s long‑term debt obligations and frees working capital, positioning the company to pursue growth initiatives such as its SuperSuite platform, which now accounts for roughly 20% of total revenue. By eliminating the ABL, iPower also removes the recurring interest and covenant costs that had constrained its capital flexibility.
The bridge loan amount was not disclosed, but the company said it provides a clean, predictable runway while it evaluates longer‑term capital solutions. The loan’s fee‑free structure gives iPower additional flexibility to manage cash flow during this transition.
In the first quarter of fiscal 2026, iPower cut total debt by 48% to $1.9 million and reduced operating expenses by 42%, reflecting disciplined cost management. CEO Lawrence Tan said the move allows the company to “go on offense” and focus on “true opportunities” while staying disciplined on cost and execution.
The company is also shifting its supply chain from China‑import‑based sourcing to a U.S.‑based inventory model, reducing tariff exposure and improving logistical control. While the debt repayment is a positive step, iPower still faces revenue declines in some legacy segments, and its overall analyst sentiment remains negative.
The ABL repayment signals iPower’s intent to transition to a more flexible capital structure, but the company will need to secure a longer‑term financing plan to sustain growth and maintain financial resilience.
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