Roundy's, Inc., a grocer in the Midwest, announced that it has closed an underwritten public offering of 8,844,339 shares of its common stock, at a price to the public of $7.00 per share.
In a release on February 12, the Company noted that it sold 2,948,113 shares of its common stock and certain selling stockholders sold 5,896,226 shares of the Company's common stock. The underwriters exercised in full their option to purchase an additional 1,326,650 shares of common stock from the selling stockholders, all at the offering price less the underwriting discount. As a result, the total offering size was 10,170,989 shares of common stock.
The Company intends to use the net proceeds for general corporate purposes, which it expects to include funding working capital and operating expenses as well as capital expenditures to build out the Chicago stores acquired from Safeway. The Company did not receive any of the proceeds from the sale of shares by the selling stockholders, including the shares sold by the selling stockholders pursuant to the underwriters' exercise of their over-allotment option.
Credit Suisse and J.P. Morgan, along with BofA Merrill Lynch and BMO Capital Markets, acted as joint bookrunning managers for the offering. Baird acted as lead manager.
Roundy's is a grocer in the Midwest with nearly $4.0 billion in sales and more than 21,000 employees.
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