PLBY Group amends $160 million term loan covenants

Chicago, Dec. 7 – PLBY Group, Inc. amended its loan on Tuesday with Acquiom Agency Services LLC as the administrative agent and collateral agent, with special focus on waiving applicable net leverage ratio covenants up through the second quarter of 2024 in connection with certain prepayments of the term loan under the credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

Further, the amendment provides a covenant by the company to use 80% of any gross proceeds from its next common equity capital raise to prepay the debt under the existing credit agreement up to an aggregate amount of $50 million, provided that, such cap may be reduced by any other voluntary prepayments after the date of the third amendment.

PLBY announced a rights offering on Wednesday to the company’s stockholders. The rights offering is expected to result in proceeds of $50 million. The majority of the proceeds are expected to be used to pay down the senior debt under the existing credit agreement.

“We believe the anticipated paydown of our debt from cash on hand and expected proceeds from the rights offering we announced earlier today will reduce the cash burden of our debt and provide us with the flexibility to continue to improve our capital structure,” said the company’s chief executive officer Ben Kohn.

Based in Los Angeles, PLBY Group owns Playboy, a media and lifestyle company.

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