Casper Sleep (CSPR) Stock: Why The Price Surged Today

By Amit Chowdhry ● Nov 15, 2021
  • The stock price of Casper Sleep Inc (NYSE: CSPR) increased by over 90% pre-market today. This is why it happened.

The stock price of Casper Sleep Inc (NYSE: CSPR) increased by over 90% pre-market today. Investors are responding positively to Casper Sleep announcing today that it entered into a definitive agreement to be acquired by Durational Capital Management LP. Under the terms of the deal, Casper common stockholders will receive cash consideration of $6.90 per share, representing a 94% premium to the closing share price on November 12, 2021, the last trading day prior to this announcement and a premium of approximately 80% to the 30-day volume weighted average price ending November 12, 2021.

Casper’s Board of Directors unanimously approved the transaction and recommends that Casper stockholders approve the transaction and adopt the merger agreement. The deal is expected to close in the first quarter of 2022 and is subject to customary closing conditions, including Casper stockholder approval. And officers and directors of Casper and affiliated investors, who in the aggregate own or control approximately 28% of the company’s outstanding shares have agreed to vote in favor of the transaction. Upon closing the deal, Casper will operate as a privately-held company and will remain based in New York.

The deal is not subject to a financing condition and Durational has committed debt financing led by KKR Credit and Callodine Commercial Finance, LLC.

KEY QUOTES:

“We are delighted to announce this transaction with Durational Capital Management that creates immediate and substantial value for shareholders, and allows Casper to move forward on strong financial footing. In consultation with outside advisors, Casper’s Board of Directors evaluated a range of strategic and financial alternatives over several months and determined, after careful consideration, that the transaction proposed by Durational is superior to all other alternatives available. With a commitment to maximizing value for all shareholders, the Board unanimously supports the offer from Durational and recommends that shareholders approve the transaction. This agreement offers a promising opportunity to realize the highest value for our stockholders while providing Casper with much needed capital to execute on future initiatives to sustain and grow its business.”

— Casper’s Co-Founder and Chief Executive Officer, Philip Krim

“We are excited to invest in Casper given its iconic brand, strong growth profile and track record of innovation.” 

— Eric Sobotka, Managing Partner at Durational Capital Management

“With its world-class products and focus on health and wellness, we believe Casper is well-positioned for future success. We look forward to partnering with the Casper team to build on the strength of the brand and to create new opportunities for the company to thrive.”

— Matthew Bradshaw, Managing Partner at Durational Capital Management

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.