Playboy Refinances to Help Jumpstart Growth

LOS ANGELES — Playboy Enterprises has completed key financing of $150 million from a single lender that it hopes will help jumpstart brand licensing and media growth.

The company said yesterday that the loan significantly enhances its ability to reposition itself into a lifestyle brand with “a lean, efficient operating structure.”

“By further improving our capital structure with lower cost funding that improves our investment flexibility, Playboy is better positioned to leverage its reinvigorated brand to drive growth in revenue and cash flows through attractive opportunities in global licensing and content, including digital media,” CEO Scott Flanders said in a statement.

He added, “This strategically important refinancing is the direct result of the creative and diligent work of our financial partners and advisors under the direction of EVP/CFO Christoph Pachler and EVP/business affairs Rachel Sagan.”

According to Moody’s Investors Service, Playboy owes $157 million in loans and is seeking to refund $147 million of first-lien debt and its $10 million revolving credit line.

Playboy’s debt will be more than eight times its earnings before interest, taxes, depreciation and amortization this year, and 6.5 times in 2015, according to Standard & Poors (S&P) adjusted figures.

Moody’s Investors Service withdrew Playboy’s B2 corporate rating, and S&P rates the company CCC+, a level reserved for borrowers it deems “currently vulnerable to nonpayment.”

Despite a $35 million debt reduction since 2013, the bid for refinancing still reprsents an uphill battle for the company that’s licensing growth has been offset by dwindling print and a brand suffering from a porn-saturated market.

Some analysts also believe that the single lender possibly indicates that the company had trouble finding a group or investors, or perhaps it’s a new investor willing to take the risk.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

SadoToys, Cruel Reell Team Up for 'RIP Slip' Leather Thong

BDSM pleasure brand SadoToys has joined forces with recently crowned Euro XMAs Fetish Creator of the Year Cruel Reell to release the RIP Slip leather thong.

Taliban Restricts Access to Adult Content by Shutting Down Internet

The Taliban has shut down internet access across a large portion of Afghanistan in a move to prevent what it deems "immoral activities."

Go.cam Launches Video Spoofing Protection

Go.cam has announced that its verification solution now features security against video spoofing.

SexLikeReal Releases 'VR Self-Care' Guide

SexLikeReal (SLR) has published a blog post spotlighting “VR Self-Care.”

Brady Mills Agency to Launch 'AgeWallet' Subscription AV Solution

Tech company Brady Mills Agency announced that its subscription-based merchant age verification solution, AgeWallet, will launch in November.

EU Advocate General: France Can Require Foreign Sites to Implement AV

An advocate general of the European Union’s Court of Justice on Thursday advised the court to rule that France may require pornographic websites based in other EU states to implement age verification in accordance with French law.

Adam & Eve Unveils Stroker Inspired by Octopus From Amazon's 'The Boys'

"The Boys" showrunner Eric Kripke has teamed with Adam & Eve on the release of a new stroker based on Ambrosius the Octopus ahead of the Season 2 premiere of Amazon's spinoff series, "Gen V."

Hentaied Founder Romero 'Mr. Alien' on Fetish, Fantasy and Finding Order in Chaos

A sharp sting pierces the woman’s skin. Something foreign slips beneath the surface. Eggs, maybe. She doesn’t know it yet, but soon her body will become a vessel, a hive, a source of contamination.

AEBN Publishes Popular Searches for July, August

AEBN has published the top search terms for the months of July and August from its straight and gay theaters in all 50 states and the District of Columbia.

Pjur Debuts 'Toy Lube and Cleaner Collection

Pjur has introduced its new Toy personal lubricant and cleaner collection.

Show More