By Dean Seal

Blue Apron Holdings Inc. will receive $70.5 million in a mixed financing arrangement that will see its chief executive personally investing half a million dollars at a substantial premium to its latest closing share price.

The meal-kit company said Monday that CEO Linda Findley and RJB Partners LLC are investing $500,000 and $40 million, respectively, in a private placement at $12 a share. RJB has already completed half of its investment and is slated to supply the next $20 million on May 30.

The company also plans to pay off its existing debt load with $30 million in notes gleaned from a partnership with Allianz Global Investors. The refinancing will extend Blue Apron's debt maturity to 2027.

After closing at $3.02 a share last week, Blue Apron's stock price traded as high as $4.39 in pre-market hours before opening at $3.93.

Ms. Findley said Monday that the financing arrangement will support Blue Apron's "continued turnaround." Founded in 2012, the company went public five years later at a lofty $2 billion valuation but faced declines in users and revenue until the onset of the pandemic, which spiked demand for cooking at home.

Blue Apron shares are down 41% since the start of the year.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 02, 2022 10:11 ET (14:11 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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