Blue Apron repays senior notes as company goes asset-light

Chicago, June 12 – Blue Apron Holdings, Inc. repaid all of its senior notes and eliminated its debt at the conclusion of a transaction with FreshRealm Inc., according to a press release.

Blue Apron transferred its operational infrastructure to FreshRealm, including fulfillment centers, equipment, know-how and related personnel.

FreshRealm paid Blue Apron a $25 million upfront cash payment, and is eligible to receive up to $25 million in milestone payments.

In terms of milestone payments, Blue Apron will be eligible for a $3.5 million note payable by FreshRealm to Blue Apron, which is subject to offset for certain indemnification obligations, a $4 million contingent cash payment, conditioned on achievement of certain operational and financial milestones by Blue Apron, and up to an additional $17.5 million in rebates against payments under the production and fulfillment agreement that can be earned by Blue Apron for volume based on meal kits ordered by customers and new product initiatives.

Blue Apron is a home cooking company based in New York.

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