Emerald Holding Inc., the parent of Outdoor Retailer, Surf Expo and other trade shows, announced the completion of its previously announced issuance and sale of 22.66 million shares of its 7 percent Series A convertible participating preferred stock to an affiliate of Onex Partners V LP.
The shares were sold at a subscription price of $5.60 per share.
The Backstop Sale was completed pursuant to the Investment Agreement dated as of June 10, 2020 between Onex and the company, under which, among other things, Onex had agreed to purchase, for the subscription price, any shares of Series A preferred stock not subscribed for by the company’s common stockholders in the company’s previously announced offering of non-transferable rights to purchase shares of its series A preferred stock.
Emerald sold a total of 71.45 million shares of Series A preferred stock pursuant to the Investment Agreement and the rights offering, of which Onex purchased a total of 69.72 million shares, including the shares purchased pursuant to the backstop sale.
Proceeds from all such sales of approximately $400 million were used to repay outstanding borrowings under Emerald’s revolving credit facility, with the remainder to be used to pay fees and expenses associated with the sale of Series A preferred stock and for general corporate purposes, including organic and acquisition growth initiatives.
Logo courtesy Emerald Holding Inc.
