secwatch.observer — SEC 8-K summary
======================================

Issuer:     Purple Innovation, Inc. (PRPL)
CIK:        0001643953
Form:       8-K
Filed at:   2023-02-21T23:59:59+00:00
Accession:  0001213900-23-013019
Event type: debt
Sentiment:  neutral
Materiality: 0.65
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Purple Innovation amends credit agreement, waives leverage and fixed charge covenants for Q1-Q2 2023
--------------------------------------------------------------------------------

- Leverage ratio covenant not tested for Q1 and Q2 2023; revised to 4.50x for Q3 and 3.00x for Q4 onward.
- Fixed charge coverage ratio not tested for Q1 and Q2; revised to 1.50x for Q3-Q4 2023 and 2.00x for Q1 2024 onward.
- Revolving line reduced to $50M (near-term limit $15M until 2022 audit completed); maturity springs to June 2024 if 2023 EBITDA <$15M.
- Minimum consolidated EBITDA covenant set for Q1 and Q2 2023 based on cash/revolver availability (e.g., $(10)M to $(4)M).
- Amendment conditioned on $60.3M equity raise (Feb 13, 2022) and repayment of $24.7M term loan; amendment fee 2.0%.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1643953/000121390023013019/0001213900-23-013019-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1643953/000121390023013019/ea173932-8k_purpleinnov.htm
  HTML page:      https://secwatch.observer/filing/0001213900-23-013019

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer