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Purple Innovation, Inc. Announces New Five-Year, $100 Million Senior Secured Credit Facility
LEHI, Utah, Sept. 3, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company known for creating the "World's
About this update from Purple Innovation, Inc.
[{"type":"text","content":"LEHI, Utah, Sept. 3, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) (\"Purple\"), a comfort innovation company known for creating the \"World's First No Pressure™ Mattress,\" today announced that it has executed a new five-year $100 million senior secured credit facility with a group of financial institutions led by KeyBanc Capital Markets. \n\n \n \n \n \n \n \n\n \nThe new credit facility consists of a $45 million term loan and a $55 million revolving line of credit. Proceeds from the term loan, which was fully drawn at closing, were used to retire all indebtedness related to the Company's existing credit agreement. \n\"This new credit facility creates a capital structure that is more aligned with our strong balance sheet and planned capacity expansion in support of our continued profitable growth,\" said Joe Megibow, the Company's CEO. \"With significantly reduced borrowing costs and greater flexibility and liquidity, Purple is now in an even stronger position to capitalize on the many long-term opportunities that lie ahead.\" \nThe borrowing rates will be based on the Company's leverage ratio, as defined in the Credit Agreement, and can range from LIBOR plus 3.00 percent to 3.75 percent with a LIBOR floor of 0.50 percent. The initial borrowing rate is LIBOR plus 3.00 percent, which is 850 basis points lower than the Company's previous borrowing rate. Terms of the new facility are more completely discussed in the Company's Form 8-K filed with the Securities and Exchange Commission.\nKeyBanc Capital Markets acted as the joint lead arranger and will be the administrative agent for the financing. Funding will be provided through a syndicate of banks including Keybank, Bank of Montreal, Fifth Third Bank, Silicon Valley Bank, Truist, Wells Fargo, Raymond James, and Arvest Bank.\nAbout Purple \nPurple is a digitally-native vertical brand with a mission to help people feel and live better through innovative comfort solutions. We design and manufacture a variety of innovative, premium, branded comfort products, including mattresses, pillows, cushions, frames, sheets and more. Our products are the result of over 30 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, Hyper-Elastic Polymer®, underpins many...