Scott Eisen/Getty Images News

Scott Eisen/Getty Images News

Blue Apron (NYSE:APRN +40.1% ) is bouncing back on Monday after announcing a new plan to deal with its debt.

On Monday morning, the New York-based meal kit company announced it had entered into agreements for a new $40 million private placement investment by RJB Partners, a $500,000 private placement investment by Blue Apron’s President and CEO Linda Findley at $12 per share, and the refinancing of its existing debt with $30 million of senior secured notes issued to clients of Allianz Global Investors.

The total capital infusion amounts to $70.5 million, a figure equal to more than half of the company’s market cap.

“We also view this planned debt refinancing as a smart, strategic move during a time of rising interest rates,” Findley said. “Upon closing the new debt, we expect to repay our existing debt, which will move our debt maturity five years out to 2027 and lower our overall debt service obligations, giving us the horizon to focus on executing our plans.”

She added that proceeds from the spate of moves will help alleviate the overhang of its existing term loan and offer breathing room for progress on its turnaround strategies.

For the equity purchase agreements with Findley and RJB Partners, the purchase price of $12 represents a nearly 75% premium to Friday’s close. These agreements add to previous agreements entered into in February by RJB Partners amounting to $5 million of common stock at $14 with rights to buy more stock at $15, $18 and $20.

“The future prospects of Blue Apron are being under-estimated in my view,” RJB Partners manager Joseph Sanberg tweeted at the time. “RJB Partners is committed long-term to its investment in $APRN and would welcome the opportunity to invest a lot more than this additional $5mm directly in the company because RJB believes that Blue Apron can generate compelling rates of return on its investments in growth.”

Since that point, the stock has been halved. Still, Sanberg appears undeterred in making his latest investment.

“Linda and the team at Blue Apron have my continued support as they execute on their strategy,” he declared on Monday.

Shares gained about 30% shortly after the news broke and extended gains in Monday’s early trading session. Nonetheless, the stock remains down nearly 40% year to date even when accounting for Monday’s massive rebound.

Read more on the company’s previous private placement in February.