By Dean Seal
Blue Apron Holdings Inc. will receive $70.5 million in a blended financing deal that will see its chief executive personally invest half a million dollars at a substantial premium to its last closing price.
The meal kit company said Monday that CEO Linda Findley and RJB Partners LLC are investing $500,000 and $40 million, respectively, in a private placement at $12 per share. RJB has already made half of its investment and is expected to provide the next $20 million on May 30.
The company also plans to pay off its existing debt with $30 million in notes gleaned through a partnership with Allianz Global Investors. The refinancing will extend Blue Apron’s debt maturity to 2027.
After closing at $3.02 per share last week, Blue Apron’s stock price traded as high as $4.39 in the pre-market hours before opening at $3.93.
Ms Findley said on Monday the funding deal would support Blue Apron’s “continued turnaround”. Founded in 2012, the company went public five years later at a lofty valuation of $2 billion, but faced declining user numbers and revenue until the onset of the pandemic, which drove home cooking demand.
Blue Apron shares are down 41% year-to-date.
Write to Dean Seal at [email protected]