Purple Innovation replaces bank debt with consolidated term loan

Chicago, Jan. 23 – Purple Innovation, Inc. completed a refinancing wherein Coliseum Capital Management, LLC and No Street Capital, LLC will assume the company’s two primary outstanding debt facilities and consolidate lending into a new term loan, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The new $61 million term loan replaces an ABL credit agreement and a previous term loan.

The term loan will have approximately $21 million of incremental available capital. There will also be an additional incremental $19 million term loan available subject to agreement by the parties on terms.

Interest may be paid in kind. The rate will be SOFR plus 825 basis points, subject to a 3.5% SOFR floor. There is a 200 bps step-up for PIK interest.

Any prepayments between Aug. 7, 2024 and Aug. 7, 2025 will be at 101.25. The prepayment penalty after Aug. 7, 2025 is at 102.5.

The term loan matures Dec. 31, 2026.

Immediately preceding the transaction, the company had $26 million of net liquidity, including the ABL facility.

Cash and cash equivalents after the transaction were approximately $48 million.

The new term loan removes restrictions and requirements customarily associated with an ABL credit agreement.

In connection with the new term loan, the company issued warrants to the lenders to purchase 20 million shares of the company’s class A common stock at a price of $1.50 per share.

Purple designs and manufactures sleep products. The company is based in Lehi, Utah.

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