2023-08-15 09:09:47 ET
Shares of Arena Group ( NYSE: AREN ), the publisher of Sports Illustrated and Men's Journal, jumped 15% in premarket trading after the founder of 5-hour Energy agreed to acquire a majority stake in the company.
Arena Group, whose brands also include TheStreet and Parade Media, announced on Monday after the close that Simplify Inventions and Manoj Bhargava, founder of 5-hour Energy and owner of TV news stations, agreed to take a 65% stake in Arena ( AREN ) with a $50 million investment, according to a statement.
Under the agreement, Arena ( AREN ) will also receive a 5-year guaranteed advertising commitment of about $60 million from a group of consumer brands also owned by Simplify, including 5-hour Energy and Bridge Media network operations.
Arena ( AREN ) intends to use a portion of this cash to reduce its debt by $20 million from current levels. B. Riley Financial has agreed to extend the maturity of the remaining debt held by it from December 31, 2023, to December 31, 2026, at a fixed rate of 10%.
On Monday, Arena ( AREN ) also reported Q2 results.
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Sports Illustrated publisher Arena Group surges on deal with 5-hour Energy founder