PLBY Group Inc. raised $65 million in a rights offering earlier this month.
The Westwood-based sexual wellness and style and apparel company said that it expects to use about 80% of the gross proceeds of the rights offering to pay down senior debt and the remainder for general corporate purposes.
With the repayment of the debt, along with $25 million repaid in December 2022, the company will have retired at least $65 million of the senior debt, according to a release from PLBY Group.
The rights offering included an over-subscription privilege to permit each rights holder that exercises the basic subscription right in full to purchase additional shares of common stock (if any) that remain unsubscribed at the expiration time on Jan. 23, the company’s release said.
Ben Kohn, the chief executive of PLBY Group, said that the company appreciates the confidence that existing shareholders have shown in it by substantially over-subscribing in the rights offering.
“As a result, together with the separate registered direct offering, we were able to raise $65 million of new capital, which will allow us to access flexibility under our credit agreement to improve our capital structure,” Kohn said in a statement. “Playboy is one of the most recognizable and iconic brands in the world, and we remain focused on our long-term strategic initiatives.”
The company plans to continue to streamline costs while investing in its Playboy and Honey Birdette direct-to-consumer businesses and building on the increased traction it is has seen in its creator-led digital platform since relaunching it and rebranding it Playboy in September of last year, Kohn continued.
“We will further leverage our creators around our marquee brand as we advance into the Year of the Rabbit and our 70th year, to make the platform truly a ‘Playboy’ experience for creators and users,” Kohn added in his statement.
In August 2021, PLBY Group closed on its acquisition of Honey Birdette, an…
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