Purple Innovation Strengthens Balance Sheet, Creating Greater Financial Flexibility To Execute Growth Strategy; Reaffirms 2023 Guidance And Provides Update On Efforts To Accelerate Revenue Growth And EBITDA Improvement
Portfolio Pulse from Benzinga Newsdesk
Purple Innovation, Inc. (NASDAQ:PRPL) has completed a refinancing that consolidates its debt facilities into a new $61 million term loan, providing $21 million of incremental capital and an option for an additional $19 million loan. The refinancing strengthens Purple's balance sheet and provides financial flexibility to support its growth strategy. The company reaffirmed its 2023 guidance, expects Q4 Net Revenue and Adjusted EBITDA within guidance, and is focused on revenue growth and EBITDA improvement in 2024. Purple issued warrants for 20 million shares at $1.50 each to the lenders and will file the full terms on a Form 8-K with the SEC.
January 23, 2024 | 9:10 pm
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Purple Innovation has completed a strategic refinancing to strengthen its balance sheet, providing greater financial flexibility for growth. The company reaffirmed its 2023 guidance and is optimistic about revenue growth and EBITDA improvement.
The refinancing deal is likely to be viewed positively by investors as it provides Purple Innovation with additional capital and financial flexibility, which is critical for executing its growth strategy. The reaffirmation of the 2023 guidance and the anticipation of improved revenue and EBITDA suggest a positive outlook, which could lead to a short-term increase in the stock price.
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