Hugh Hefner's bid to take Playboy Enterprises (NYSE:PLA) private will be financed by a $180 million term loan underwritten by Jefferies Group (NYSE:JEF), according to reports.
The term loan will back Icon Acquisition Holdings L.P., a limited partnership controlled by Playboy founder Hugh Hefner, in a bid to take the men's magazine private with Rizvi Traverse Management LLC, according to a Reuters report.
The deal would value the company at near $207 million, or $6.15 per share. The deal represents an 18.3% premium over the company’s closing price on Friday, Jan. 7.
"With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company,” Hefner said, in a statement issued by Playboy Enterprises on Monday. “The brand resonates today as clearly as at any time in its 57-year history. I believe this agreement will give us the resources and flexibility to return Playboy to its unique position and to further expand our business around the world."
Shares of Playboy rose just two cents, or a fraction of 1%, to $6.11 a share on Tuesday, after jumping 17% on Monday when news of the deal was released.