Purple Innovation announces offering of $50M of Class A common stock

Purple Innovation announced it intends to sell $50M of its Class A common stock in an underwritten public offering. The company intends to use net proceeds from the offering to discharge outstanding indebtedness under the company’s credit agreement, dated as of September 3, 2020 and amended as of February 28, 2022 and March 23, 2022, with the lenders party thereto and KeyBank National Association, as administrative agent, which provides for a $45M term loan and a $55M revolving line of credit. There is currently approximately $24.7M outstanding under the term loan and no amounts outstanding under the revolving line of credit. The term loan matures on September 3, 2025 and has a current annual interest rate of 8.98%. The company intends to use the net proceeds from this offering, after discharging indebtedness under the credit agreement, for working capital and general corporate purposes, which may include working capital, capital expenditures, other corporate expenses and acquisitions of complementary products, technologies or businesses. BMO Capital Markets and KeyBanc Capital Markets are acting as joint-book-running managers.