Compass Diversified Holdings, which owns Fox Racing Shox, said it raised approximately $73.4 million in gross proceeds from the sale of 5.1 million shares in a secondary offering that also included the sale of 1.3 million shares from an existing shareholder. The shares were priced at $15.10, or about 6% below their trading price on Monday.
If underwriters exercise their rights to purchase all overallotment shares, the issue could raise proceeds to $84.0 million. CODI shares were trading just under $15 Friday afternoon.
CODI expects to use the net proceeds from the offering for general corporate purposes, including financing acquisitions if and when identified and consummated, repayment of debt under its revolving credit facility and/or distribution to shareholders. CODI will not receive any proceeds from the secondary offering.
Morgan Stanley and UBS Investment Bank were the joint book-running managers on the offering, with BB&T Capital Markets, a division of Scott & Stringfellow, LLC; CJS Securities, Inc.; Janney Montgomery Scott and SunTrust Robinson Humphrey acting as co-managers.
