Playboy Secures $185 Million Expansion Loan
LOS ANGELES — Continuing to bolster its stance as a branding powerhouse, Playboy Enterprises announced today that it has raised additional capital to further the company’s growth.
The company closed on a $185 million term loan and $10 million in revolving credit.
Playboy said the financing is designed to support its expansion after going private in March 2011 and the subsequent restructuring and transition of the company's business.
Jefferies LLC managed the financing that was upsized from a planned $175 million based on lender demand.
"We believe this new financing underscores investor confidence in our progress as we transform Playboy into a global lifestyle brand licensing company," CEO Scott Flanders, said.
He added, "The new facility strengthens our capital structure, adds to our working capital and enhances our flexibility to execute on our strategic plan. We greatly appreciate the support of our new lending group, including the significant number of original lenders who are participating in this facility. I also want to thank Jefferies for their outstanding work in completing this transaction."
In a recent corporate memo, Flanders said the company is in year one of a three year brand rivitalization, particulalry in North America,
"There's no question that we know more today than a year ago and we are constantly recalibrating our approach to reflect those learnings. That's not only a good thing; it's a deliberate thing. We are — and always will be — a learning organization. A such, we will constantly evolve our thinking, refine our plans and adapt our apporach to the situation and the circumstances. But, we need to do this in a way that is consistent with a clear and articulated strategy and vision," Flanders said.