Post by highskier on May 2, 2022 16:16:14 GMT
The stk is up 36% on the highest daily vol in 25 months.
Blue Apron Announces $70.5 Million Planned Capital Infusion Through Debt and Equity Financings
RJB Partners commits to $40 million private placement at $12 per share; $20 million investment completed with additional $20 million investment expected in Q2 2022
Blue Apron President, CEO Linda Findley invests $500,000 in a private placement at $12 per share
Company plans to refinance debt with $30 million in partnership with Allianz Global Investors, extending debt maturity to 2027 and lower overall debt service obligations
NEW YORK, May 02, 2022--(BUSINESS WIRE)--Blue Apron (NYSE: APRN) announced today two significant capitalization events. The company plans to use the proceeds to pay off its existing term loan, and for general corporate purposes to stay focused on its long-term sustainable growth plan and to continue to execute on its turnaround strategies.
Blue Apron entered into agreements for (i) a new $40.0 million private placement investment by RJB Partners LLC, an affiliate of Joseph N. Sanberg, a long-time investor in the company and a leading investor in climate positive companies; and (ii) a $500,000 private placement investment by Blue Apron’s President and Chief Executive Officer Linda Findley. In connection therewith, the company is also planning to refinance its existing debt with $30.0 million of senior secured notes issued to clients of Allianz Global Investors—which will be used to pay off its current debt facility—and extend debt maturity to 2027. The debt with clients of Allianz Global Investors is subject to the entry into a definitive agreement and other closing conditions.
"I am pleased to be investing additional equity into a business that I believe has great potential from a strategic and purpose-driven perspective," said Findley. "We also view this planned debt refinancing as a smart, strategic move during a time of rising interest rates. Upon closing the new debt, we expect to repay our existing debt, which will move our debt maturity five years out to 2027 and lower our overall debt service obligations, giving us the horizon to focus on executing our plans. The proceeds from the closed transactions and expected additional debt and equity fundings support our continued turnaround as we drive towards long-term sustainable and profitable growth."
"Blue Apron's plan is focused on driving growth in a conscious way that speaks to consumers looking for values-aligned products and capitalizing on their brand that is ubiquitous with meal kits and recognized by a majority of Americans*," said Sanberg. "I believe that their commitment to doing right by the planet and their customers through sustainable sourcing, packaging and a goal of net zero status is aligned with consumers and investors alike in driving a great business for the future. Linda and the team at Blue Apron have my continued support as they execute on their strategy."
Under the terms of the equity purchase agreements, on April 29, 2022, Long Live Bruce, LLC, an affiliate of Joseph N. Sanberg (which was assigned RJB Partners LLC’s rights to purchase the initial $20 million of Class A common stock) purchased 1,666,666 shares of Class A common stock and Findley purchased 41,666 shares of Class A common stock, in each case, at a purchase price of $12 per share. Under the purchase agreements, the company has agreed to provide each of RJB Partners LLC and Findley with certain customary registration rights with respect to the securities purchased in the private placements. The remaining $20.0 million investment from RJB Partners LLC, also to be made at $12 per share, is expected to close on May 30, 2022, subject to the completion of refinancing of the company’s outstanding debt and other customary closing conditions.
The securities sold in the private placements have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. The company has agreed to file registration statements with the U.S. Securities and Exchange Commission (the "SEC") registering the resale of the shares of common stock issued in the private placements on the earliest (i) within 30 days of the date requested by RJB Partners LLC or Findley, as applicable, and (iii) such other date as mutually agreed by Blue Apron and RJB Partners LLC, or Blue Apron and Findley, as applicable.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.
*Based on a sample survey relating to aided brand awareness
Blue Apron President, CEO Linda Findley invests $500,000 in a private placement at $12 per share
Company plans to refinance debt with $30 million in partnership with Allianz Global Investors, extending debt maturity to 2027 and lower overall debt service obligations
NEW YORK, May 02, 2022--(BUSINESS WIRE)--Blue Apron (NYSE: APRN) announced today two significant capitalization events. The company plans to use the proceeds to pay off its existing term loan, and for general corporate purposes to stay focused on its long-term sustainable growth plan and to continue to execute on its turnaround strategies.
Blue Apron entered into agreements for (i) a new $40.0 million private placement investment by RJB Partners LLC, an affiliate of Joseph N. Sanberg, a long-time investor in the company and a leading investor in climate positive companies; and (ii) a $500,000 private placement investment by Blue Apron’s President and Chief Executive Officer Linda Findley. In connection therewith, the company is also planning to refinance its existing debt with $30.0 million of senior secured notes issued to clients of Allianz Global Investors—which will be used to pay off its current debt facility—and extend debt maturity to 2027. The debt with clients of Allianz Global Investors is subject to the entry into a definitive agreement and other closing conditions.
"I am pleased to be investing additional equity into a business that I believe has great potential from a strategic and purpose-driven perspective," said Findley. "We also view this planned debt refinancing as a smart, strategic move during a time of rising interest rates. Upon closing the new debt, we expect to repay our existing debt, which will move our debt maturity five years out to 2027 and lower our overall debt service obligations, giving us the horizon to focus on executing our plans. The proceeds from the closed transactions and expected additional debt and equity fundings support our continued turnaround as we drive towards long-term sustainable and profitable growth."
"Blue Apron's plan is focused on driving growth in a conscious way that speaks to consumers looking for values-aligned products and capitalizing on their brand that is ubiquitous with meal kits and recognized by a majority of Americans*," said Sanberg. "I believe that their commitment to doing right by the planet and their customers through sustainable sourcing, packaging and a goal of net zero status is aligned with consumers and investors alike in driving a great business for the future. Linda and the team at Blue Apron have my continued support as they execute on their strategy."
Under the terms of the equity purchase agreements, on April 29, 2022, Long Live Bruce, LLC, an affiliate of Joseph N. Sanberg (which was assigned RJB Partners LLC’s rights to purchase the initial $20 million of Class A common stock) purchased 1,666,666 shares of Class A common stock and Findley purchased 41,666 shares of Class A common stock, in each case, at a purchase price of $12 per share. Under the purchase agreements, the company has agreed to provide each of RJB Partners LLC and Findley with certain customary registration rights with respect to the securities purchased in the private placements. The remaining $20.0 million investment from RJB Partners LLC, also to be made at $12 per share, is expected to close on May 30, 2022, subject to the completion of refinancing of the company’s outstanding debt and other customary closing conditions.
The securities sold in the private placements have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. The company has agreed to file registration statements with the U.S. Securities and Exchange Commission (the "SEC") registering the resale of the shares of common stock issued in the private placements on the earliest (i) within 30 days of the date requested by RJB Partners LLC or Findley, as applicable, and (iii) such other date as mutually agreed by Blue Apron and RJB Partners LLC, or Blue Apron and Findley, as applicable.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.
*Based on a sample survey relating to aided brand awareness