Munger, Tolles & Olson represented Hugh Hefner in a deal to take Playboy Enterprises private.
Playboy announced on Jan. 10, 2011 that it entered into a definitive agreement with Icon Acquisition Holdings, a limited partnership controlled by Mr. Hefner, to take the company private for $6.15 per share. The $6.15 price represents a 18.3% premium over the closing price Friday, January 7, 2011, of PLA and a 56.1% premium over the closing price on July 9, 2010, the last trading day before the proposal was first announced. The deal closed March 4, 2011.
The purchaser, Icon Acquisition Holdings, has obtained equity commitments for the transaction from an affiliate of Rizvi Traverse Management (Rizvi Traverse) and a debt commitment for the transaction from affiliates of Jefferies & Company.
“With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company,” Mr. Hefner said. “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.”
Corporate partners Robert B. Knauss, Brett J. Rodda and Maria Seferian represented Mr. Hefner in the transaction. Tax partner David B. Goldman also worked on the matter, as did real estate attorney Benjamin W. Howell.