Company: NAVN
Filing Date: 2025-09-19
Form Type: S-1
Source: 0001628280-25-042130
Chunk: 380

Company: Navan, Inc.
Filing Date: 2025-09-19
Form: S-1
Chunk 380
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 2025 , we entered into SAFEs with multiple investors in exchange for cash proceeds (the “Purchase Amount”) of $155.0 million , with an interest rate of 12% per annum. The SAFEs provide for conversion or repayment depending on the nature of the triggering event. In a qualified equity financing or a liquidity event, such as a qualifying initial public offering, direct listing, or reverse merger, the outstanding Purchase Amount plus accrued interest converts into equity at a 15% discount to the price paid by new investors. In a qualified equity financing, the SAFEs convert into preferred stock, while in a liquidity event, they convert into common stock. If a deemed liquidation event occurs, including a change of control or dissolution, the SAFEs are automatically repaid in the same form of proceeds offered to other security holders. If none of these events occur within 36 months of issuance, the investors may elect to convert the outstanding Purchase Amount plus accrued interest into the then most senior series of preferred stock at a 15% discount to the fair market value per share. Upon a deemed liquidation event, the SAFEs operate like non-participating preferred stock. The investors’ rights are junior to outstanding indebtedness and creditor claims, and are on par with other SAFEs and the most senior series of preferred stock then outstanding.

F-66 NAVAN, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited) We issued common stock warrants to investors together with the SAFEs. Refer to Note 3 — Fair Value for further information regarding the common stock warrants. We incurred debt issuance costs of $2.9 million in connection with the issuance of the SAFEs and common stock warrants, which were expensed when incurred and are presented within other income, net in the accompanying condensed consolidated statements of operations. Warehouse Credit Facility In November 2022 , Liquid Labs SPV, LLC (“Liquid Labs”), a wholly-owned subsidiary of the Company, entered into a loan agreement with a group of lenders for a revolving warehouse credit facility (“Warehouse Credit Facility”). Under the original terms of the agreement, the Warehouse Credit Facility had a maturity date of February 18, 2025 , or earlier pursuant to the loan agreement, and had a total commitment amount of $200.0 million , consisting of a Class A facility and a Class B facility for $171.1 million and $28.9 million , respectively. The Warehouse Credit Facility was established to finance the Company’s corporate payments offering. Borrowings on