Select Comfort Closes Public Offering

December 13, 2009  by in UnCategorized   

By Home Furnishings Business in on December 14, 2009

Select Comfort Corp. (NASDAQ: SCSS) today closed its previously announced underwritten public offering of 3.8 million shares of its common stock at a public-offering price of $4.75 per share.

Net proceeds from the sale of the shares, after underwriting discounts and commissions and other offering expenses, are expected to be about $16.4 million (excluding $1.6 million, which the company would receive if Sterling SC Investor exercises its contractual preemptive rights).

Piper Jaffray & Co. acted as the sole manager for the offering.

The company plans to use the proceeds of the public offering to improve working capital and pay down debt.

"The close of this public offering represents another significant milestone in our efforts to strengthen our balance sheet and improve financial flexibility," said Bill McLaughlin, president and CEO. "The combination of the recent Sterling Partners investment and the proceeds from this public offering allows us to eliminate our currently outstanding debt. The closing of this offering fulfills our obligation to raise equity capital under our credit agreement, and we have no present intention to raise any additional equity capital."