LEHI, Utah - Purple Innovation, Inc. (NASDAQ: NASDAQ:PRPL), a company specializing in comfort technology, announced the completion of a refinancing deal aimed at enhancing its financial flexibility and supporting its growth strategy. The refinancing includes a consolidated term loan of $61 million, providing approximately $21 million of additional capital after expenses and an option for another incremental term loan of up to $19 million, subject to terms agreement.
The transaction led by Coliseum Capital Management, LLC, and No Street Capital, LLC, replaces Purple's previous debt facilities and introduces a payment-in-kind interest option. This move is designed to strengthen Purple's balance sheet and free up cash to invest in its business operations. The refinancing also eliminates certain restrictions tied to the previous asset-based lending (ABL) credit agreement.
As a result of the refinancing, Purple's cash and cash equivalents have increased to approximately $48 million. The company also issued warrants for the lenders to purchase 20 million shares of Class A common stock at $1.50 per share, with adjustments.
Purple's CEO, Rob DeMartini, expressed confidence in the company's potential to grow revenue and improve EBITDA in 2024 despite challenging industry conditions. The company anticipates its fourth-quarter net revenue and adjusted EBITDA to align with its previously issued guidance.
This refinancing follows Purple's 2023 strategic shift dubbed the "Path to Premium Sleep," which includes a new product portfolio and enhanced brand positioning in the premium and luxury sleep market.
The full terms of the deal will be disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission.
This announcement is based on a press release statement from Purple Innovation, Inc.
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