Playboy parent PLBY Group Inc. PLBY said Thursday it has completed a capital raise totaling $65 million and will use most of the proceeds to repay senior debt. The company completed a $50 million rights offering and a $15 million registered direct offering. The company’s biggest shareholder Rizvi Traverse Management and its Chief Executive Ben Kohn fully exercised their basic and over-subscription privileges in the rights offering, which was over-subscribed. “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. The company will now focus on long-term strategic initiatives, including its Playboy and Honey Birdette direct-to-consumer businesses and the creator-led digital platform, he added. The company will continue to streamline costs as it enters the Year of the Rabbit in China, a key market where its iconic bunny-in-profile logo appears on many products. The stock was up 4% Thursday and has gained 14% in the year to date, while the S&P 500 SPX has gained 8%.
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