Clarus Corporation announced it has commenced a public offering of $85 million aggregate principal amount of convertible senior notes due 2026. In connection with the offering, the company expects to grant to the underwriters an option, which is exercisable within 30 days, to purchase up to an additional $12.75 million aggregate principal amount of the notes, solely to cover over-allotments.
The notes will be senior unsecured obligations of the company and will accrue interest payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2021. Prior to May 1, 2026, the notes will be convertible at the option of the holders during certain periods, upon satisfaction of certain conditions. Thereafter, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
The company intends to use the net proceeds from the offering for the repayment of amounts due under the revolving portion of its credit agreement and for general corporate purposes.
Jefferies and Stifel are acting as joint book-running managers for the offering.
Clarus is the owner of Black Diamond, Sierra, Barnes, PIEPS, and SKINourishment.
Photo courtesy Clarus Corp.
