Latham Advises Owlet on Public Offering and Comprehensive Debt Refinancing for Total Gross Proceeds of Up to US$46.6 Million

Owlet, Inc. (Owlet or the Company) (NYSE:OWLT), the pioneer of smart infant monitoring, has announced the closing of its underwritten public offering of 3,135,136 shares of the Company’s Class A common stock (the Offering). The shares of Class A common stock were sold at a public offering price of US$3.70 per share, representing gross proceeds from the Offering of approximately US$11.6 million, before deducting underwriting discounts and commissions and other offering expenses. All of the shares in the Offering were sold by the Company.

Owlet also previously announced its entry into a new term loan agreement with Western Technology Investment (the Term Loan Agreement) and a new revolving line of credit with Mountain Ridge Capital (the Credit Agreement, and together with the Term Loan Agreement, the Debt Refinancing). The Term Loan Agreement provides for a term loan facility of up to US$15 million, consisting of a first tranche of US$10 million, of which US$7.5 million has funded and US$2.5 million is available until December 31, 2024, and a second tranche of US$5 million available after June 30, 2025, subject to certain conditions under the Term Loan Agreement. The Credit Agreement provides for a three-year revolving credit facility of up to US$15 million, increasing to up to US$20 million on the first anniversary of the Credit Agreement.

Latham & Watkins LLP advised Owlet in the offering with a corporate deal team led by Bay Area partner Ben Potter, Orange County partner Drew Capurro, and Orange County/ Bay Area partner Ross McAloon, with Orange County associates Eric Hanzich, Kennedy Holmes, and Adrianna Robakowski; and on the debt financing with a transactional team led by Bay Area partner Dan Van Fleet, with Los Angeles associates Hyunji Lee and Ian Drazen.