Shoe Pavilion, Inc. has priced its underwritten secondary public offering of 3,000,000 shares of its common stock at a price of $7.20, which represents the closing price of its common stock on March 23, 2006. The offering consists of 2,000,000 shares being sold by the Company and 1,000,000 shares being sold by a selling stockholder. The selling stockholder has granted the underwriters an option to purchase up to an additional 450,000 shares on the same terms and conditions to cover any over-allotments.
The Company intends to use the net proceeds from this offering to open new stores and for working capital. Pending application of the proceeds, the Company intends to pay down the balance on its revolving credit facility and invest any remaining amounts in short-term investments.
Wedbush Morgan Securities Inc. is serving as lead manager and book-runner for the offering, with Roth Capital Partners serving as co-managing underwriter.
