Tupperware Brands (NYSE:TUP) soared following last night’s after-hours news of a debt deal, which management believe allows sufficient financial flexibility to enable its turnaround plan to continue.
The plastic container company secured the deal that extends maturity of US$348 million of principal out to 2027, and allows US$150 million of interest to be re-allocated into payment-in-kind interest. It also got access to US$21 million of revolving borrowing.
In addition, US$55 million of amortization payments have been extended to 2025.
In New York, Tupperware stock was up US$2.09, or 59.4%, trading at US$5.61 ahead of Friday’s open.
"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,” said chief financial officer Mariela Matute.
“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."
Tupperware, which recently found itself wearing the ‘memestock’ label, has seen retail investor interest flood into the stock.
In the past month, Tupperware’s value has rallied more than 360% from lows of around 67 cents per share as recently as 20 July – over a 12-month period, the stock is still down significantly from a peak of around US$12.50 last August.