XML 80 R62.htm IDEA: XBRL DOCUMENT v3.20.4
Debt (Details) - USD ($)
$ in Thousands, shares in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 03, 2020
Jan. 28, 2019
Feb. 02, 2018
Mar. 31, 2019
Sep. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Debt (Details) [Line Items]                
Principal amount $ 45,000   $ 25,000          
Amount of revolving line of credit 55,000              
Line of credit interest rate, description           The borrowing rates for the term loan are based on Purple LLC’s leverage ratio, as defined in the 2020 Credit Agreement, and can range from LIBOR plus a 3.00% to 3.75% margin with a LIBOR minimum of 0.50%. The initial borrowing rate of 3.50% is based on LIBOR plus 3.00%. The term loan will be repaid in accordance with a five-year amortization schedule and may be prepaid in whole or in part at any time without premium or penalty, subject to reimbursement of certain costs.    
Amended and restated credit agreement, description   Purple LLC entered into a First Amendment to the 2018 Credit Agreement (the “First Amendment”) whereby Purple LLC agreed to enter into the Amended and Restated Credit Agreement, under which two of the Lenders (“Incremental Lenders”) agreed to provide an incremental loan of $10.0 million (the “Incremental Loan”) such that the total amount of principal indebtedness provided to Purple LLC was increased to $35.0 million. Upon funding the $10.0 million Incremental Loan on February 26, 2019, the Company issued to the Incremental Lenders 2.6 million warrants (“Incremental Loan Warrants”) to purchase 2.6 million shares of the Company’s Class A Stock at a price of $5.74 per share, subject to certain adjustments. All indebtedness under the Amended and Restated Credit Agreement bore interest at 12.00% per annum and was payable on the last business day of each fiscal quarter, provided that Purple LLC was required to pay up to an additional 4.00% of interest per annum if it failed to meet certain EBITDA thresholds and an additional 2.00% of interest per annum if the Company was not in material compliance with the Sarbanes-Oxley Act of 2002. In addition, Purple LLC had the option to elect for interest in excess of 5.00% per annum to be capitalized and added to the principal amount. Any principal pre-payments in the first year were subject to a make-whole payment, while principal pre-payments in years two through four were subject to certain pre-payment penalties. The Amended and Restated Credit Agreement provided for certain remedies to the Lenders in the event of customary events of default and provided for standard indemnification of the Lenders.           the Sponsor agreed to assign to the Lenders an aggregate of 2.5 million warrants to purchase 1.3 million shares of its Class A Stock. In 2019, the Incremental Lenders agreed to provide the $10.0 million Incremental Loan. In accordance with the First Amendment to the Amended and Restated Credit Agreement, the Company did not make any cash interest payments to the Lenders during the first and second quarters of 2020. On September 3, 2020, the Company paid $45.0 million to retire, in full, all indebtedness related to Purple LLC’s 2018 Credit Agreement. The payment included the $25.0 million Original Loan, the $10.0 Incremental Loan, $6.6 million of paid-in-kind interest, $2.5 million in a prepayment fee and $0.9 million in accrued interest (See Note 10 — Debt).
Loss on the extinguishment       $ 6,300        
Unamortized debt discount           $ 4,900    
Prepayment fee for retirement           2,500    
Loss on extinguishment debt         $ 5,800 (5,782) $ (6,299)  
Amount related to unamortized debt discount and debt issuance costs           3,300    
Interest expense for debt           $ 4,700 $ 4,400  
Minimum [Member]                
Debt (Details) [Line Items]                
Interest rates, percentage           3.00%    
Maximum [Member]                
Debt (Details) [Line Items]                
Interest rates, percentage           3.75%    
Revolving Credit Facility [Member]                
Debt (Details) [Line Items]                
Debt issuance costs           $ 1,400    
2020 Credit Agreement [Member]                
Debt (Details) [Line Items]                
Amount of revolving line of credit           $ 55,000    
Long term debt term           5 years    
Debt issuance costs           $ 2,500    
Issuance cost related to debt           $ 1,100    
2018 Credit Agreement [Member]                
Debt (Details) [Line Items]                
Total amount paid for the retirement 45,000              
Original principal amount for retirement 25,000              
Fair value of the incremental loan warrants 10,000              
Paid-in-kind interest 6,600              
Prepayment fee for retirement 2,500              
Amount of accrued interest for retirement $ 900              
Warrant [Member]                
Debt (Details) [Line Items]                
Aggregate of shares assign to the Lenders (in Shares)     2.5          
Class A Common Stock [Member]                
Debt (Details) [Line Items]                
Aggregate of shares assign to the Lenders (in Shares)     1.3     1.3