APRN - Blue Apron: Very Concerning Fine Print In The Credit Line

• Blue Apron's new credit line adds new covenants that give reason for pause.
• The company is now required to maintain a set level of customers "at any given time" which may be challenging given its historical levels of churn.
• It seems likely that the company will be forced to turn to disadvantageous pricing and/or promotions in order to meet these requirements.
• The path to sustainable profits seems even less likely than before.
• Reiterate very bearish.

For further details see: