Purple Innovation Stock Jumps After Debt Refinancing
January 23 2024 - 4:16PM
Dow Jones News
By Paul Ziobro
Shares of Purple Innovation rose in after-hours trading after
the mattress company said it completed a debt refinancing that gave
it more financial flexibility.
The stock was up 9.7% to 90 cents in late trading Tuesday, after
closing down 4.2% at 82 cents in the regular session. The stock had
been down more than 85% over the last 12 months.
The Lehi, Utah-based company said Coliseum Capital Management
and No Street Capital have assumed its two primary debt facilities
from its previous lenders. The loans will be consolidated into a
new, upsized term loan of $61 million.
The transaction will bring cash and cash equivalents to around
$48 million, the company said. The company's net liquidity
preceding the transaction was around $26 million.
In connection with the new loan, Purple issued warrants to the
lenders to buy 20 million Class A shares for $1.50 each, subject to
certain adjustments.
Purple Chief Executive Rob DeMartini said the company expects
fourth-quarter net revenue and adjusted earnings before interest,
taxes, depreciation and amortization will be within its guidance
range. It also expects revenue to rise in 2024, despite challenging
industry conditions.
Write to Paul Ziobro at paul.ziobro@wsj.com
(END) Dow Jones Newswires
January 23, 2024 17:01 ET (22:01 GMT)
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