Jarden Corporation and certain of its stockholders commenced an offering of 11.5 million shares of common stock pursuant to a shelf registration statement that Jarden filed earlier. Warburg Pincus and its affiliates plan to sell 7.5 million of the shares offered in the base transaction, which will bring their ownership to under 10% of Jarden's outstanding common stock. Jarden plans to issue and sell 4.0 million shares of common stock in the base transaction, the net proceeds of which will be used for debt repayment, potential future acquisitions and general corporate purposes.
Warburg Pincus and the additional selling stockholders, including the Chief Executive Officer and Chief Financial Officer and other executive officers and directors of Jarden, intend to grant the underwriters a 30-day option to purchase up to 1,725,000 additional shares of Company common stock. Jarden will not receive any proceeds from the secondary shares sold by Warburg Pincus and the other selling stockholders.
In connection with the offering, Warburg Pincus and all of Jarden's executive officers and directors will be required to execute lock-up agreements which will generally restrict their sale of shares of Jarden's common stock for 90 days after the pricing of the public offering. This restriction will apply to sales of shares scheduled to be made under previously announced 10b5-1 stock trading plans adopted by certain executive officers.
Lehman Brothers Inc., Citigroup Corporate and Investment Banking and Goldman, Sachs & Co. are acting as joint book running managers of the offering. CIBC World Markets Corp., SunTrust Capital Markets, Inc., and William Blair & Company, L.L.C. are acting as co-managers of the offering.
