Playboy to Repurchase 15% of Shares at 28% Discount for $17.4M
PLBY•Playboy will repurchase 16.6 million shares, or nearly 15% of its outstanding stock, at $1.05 per share for about $17.4 million, representing a 28% discount to market value. The deal is funded with $2 million upfront and $15.4 million in installments through December, fully backstopped by Rizvi and Byborg affiliates.
1. Definitive Repurchase Agreement
Playboy entered a definitive agreement to repurchase 16.6 million common shares at $1.05 per share, representing approximately 15% of its outstanding stock and a total consideration of $17.4 million.
2. Payment Schedule and Funding
The company paid $2.0 million at execution and will fund the remaining $15.4 million in three installments through December, with the option to accelerate purchases at its discretion.
3. Backstop Commitments
Shares remaining unpurchased by Playboy are fully backstopped by affiliates of Rizvi Traverse and Byborg Enterprises, ensuring completion on a pro rata basis based on their current holdings.
4. Strategic Rationale and Performance
The transaction is immediately accretive to earnings per share, preserves balance sheet flexibility and follows five consecutive quarters of positive adjusted EBITDA alongside licensing deals and accelerated senior debt paydown.
