Select Comfort Sets Stock Price

December 8, 2009  by in UnCategorized   

By Home Furnishings Business in on December 9, 2009 Specialty sleep retailer Select Comfort Corp. (NASDAQ: SCSS) has set the common stock price for its upcoming public offering at $4.75 a share.

The public offering will result in gross proceeds of $18 million, and after deducting underwriting discounts and commissions, the net proceeds will be $16.96 million. Additional offering expenses are expected to be about $500,000.

Piper Jaffray is acting as the sole manager for the public offering.

If Sterling Partners exercises its preemptive rights to maintain its percentage ownership at about 9 percent, an additional 341,254 shares of common stock would be issued upon the same terms as the issuance of shares in the public offering. The public offering is subject to customary closing conditions and is expected to close Friday, Dec. 11.

The company plans to use the proceeds of the public offering to improve working capital and pay down debt. Under the terms of the company€™s amended and restated credit agreement dated Nov. 13, the aggregate amount available under the credit facility at closing will be $40 million. The proceeds from this public offering are expected to fulfill the company€™s obligation under the credit agreement to issue additional equity.