Purple Innovation (PRPL) prices 13.4 million share offering at $4.50

Purple Innovation, Inc. (NASDAQ: PRPL) announced the pricing of an underwritten public offering by the Company of 13,400,000 shares of its Class A common stock, at a public offering price of $4.50 per share, before underwriting discounts and commissions. The underwriters have a 30-day option period to purchase up to 2,010,000 additional shares of Class A common stock from the Company at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by the Company, are expected to be $60.3 million, excluding any exercise of the underwriters' option to purchase additional shares. The offering is expected to close on February 13, 2023, subject to customary closing conditions.

The Company intends to use net proceeds from the offering to discharge outstanding indebtedness under 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, which provides for a $45.0 million term loan and a $55.0 million revolving line of credit. There is currently approximately $24.7 million outstanding under the term loan and no amounts outstanding under the revolving line of credit. The term loan matures on September 3, 2025 and has a current annual interest rate of 8.98%. The Company intends to use the net proceeds from this offering, after discharging indebtedness under the Credit Agreement, 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.

BMO Capital Markets and KeyBanc Capital Markets are acting as joint lead book-running managers for the offering. Truist Securities and Raymond James are acting as book-running managers. Craig-Hallum, Roth Capital Partners and Wedbush Securities are acting as co-managers.

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