Purple announces public offering of Class A Common Stock
Lehi — Purple Innovation, Inc. (NASDAQ: PRPL) (“Purple” or the “Company”), a comfort innovation company known for creating the “World’s First No Pressure® Mattress, with its proprietary GelFlex™ Grid,” today announced it intends to sell $65 million of Class A common stock, in an underwritten public offering. The underwriter has a 30-day option period to purchase up to 15% additional shares of Class A common stock from the Company.
Under the terms of the Company’s Credit Agreement, dated as of September 3, 2020, and amended as of February 28, 2022 and March 23, 2022, with the lenders party thereto and KeyBank National Association, as administrative agent, the Company will be obligated to prepay an amount equal to the lesser of the outstanding amount of revolving loans and the aggregate amount of cash held by the Company in excess of $25 million. The Company has currently borrowed the entire $55 million available under the revolving loans. If, after receiving the net proceeds of the offering, the Company has more than $25 million of cash on hand, the Company will be required to use such excess cash to prepay the outstanding balance under the revolving loans, up to the amount of the entire outstanding balance. As of the date hereof, the Company has approximately $25 million in cash on hand. After satisfying the conditions under the Credit Agreement, the Company intends to use the net proceeds from this offering for working capital and general corporate purposes, which may include working capital, capital expenditures, other corporate expenses, and acquisitions of complementary products, technologies, or businesses. The Company does not currently have binding agreements or commitments to complete any such transactions or, except as described above, to make any such principal repayments from the proceeds of this offering.
BofA Securities is acting as the sole underwriter for the offering.
The offering is being made pursuant to an effective shelf registration statement (File No. 333-263621) that was previously filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2022. A preliminary prospectus supplement relating to the offering has been filed with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to these securities may be obtained on the SEC’s website, www.sec.gov, or from BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, or [email protected]
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Purple 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, the GelFlex™ Grid, underpins many of our comfort products and provides a range of benefits that differentiate our offerings from other competitors’ products. We market and sell our products through our direct-to-consumer online channels, traditional retail partners, third-party online retailers, and our owned retail showrooms.