Yesterday, Tupperware Brands Corp TUP announced a debt restructuring deal with lenders to restructure its existing debt obligations.
With this move, the company aims to improve its financial position by amending some credit obligations and expanding the maturity of certain debt facilities.
The agreement includes a reduction and reallocation of around $150 million of cash interest and fees, with an extension of the stated maturity of about $348 million of principal and reallocated interest and fees to FY27 with PIK interest.
The agreement also grants Tupperware access to a revolving borrowing capacity of about $21 million and a reduction of amortization payments required to be paid through FY25 by around $55 million.
"I am confident that this agreement provides us with the financial flexibility to continue executing on our near-term turnaround efforts as well as our long-term strategy to create a global omni-channel consumer brand. We are committed to making ongoing progress in improving liquidity and strengthening our capital structure. We appreciate the support of our lenders, who share in our strategy, as we move forward," said Mariela Matute, Chief Financial Officer.
Tupperware shares have been rocketing lately, surging over 430% last month amid increased support from retail investors.
Related: Tupperware Brands Stock Quintuples In July And It's Not Slowing Down: What's Going On?
Price Action: TUP shares are trading higher by 56.5% at $5.51 premarket on the last check Friday.
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