Purple Innovation Stock Jumps After Debt Refinancing

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 [e-mail]

(END) Dow Jones Newswires

January 23, 2024 17:01 ET (22:01 GMT)

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