Golf specialty retailer, Golfsmith International Holdings, Inc. has priced its initial public offering in the range of $14.00 to $16.00. The company expects to sell 6 million shares of its common stock when it debuts under the “GOLF” ticker symbol on the NASDAQ. The company estimates that the net proceeds from the offering will be $80.7 million, after deducting the underwriting discount and estimated offering expenses payable.
The company intends to use the net proceeds, together with borrowings under its new senior secured credit facility to retire $93.75 million aggregate principal amount at maturity of its 8.375% senior secured notes due 2009, which had an accreted book value of $83.6 million as of May 27, 2006; and to pay fees and expenses of approximately $1.0 million related to the company’s new senior secured credit facility and to pay a one-time $3.0 million fee to terminate its management consulting agreement with First Atlantic Capital, Ltd. upon completion of this offering. This agreement currently obligates Golfsmith to pay approximately $600,000 per year, plus expenses, to First Atlantic Capital, Ltd. until 2012.
