Ares Funds Launch 15M-Share Secondary Offering in Savers Value Village
SVV sits 67% above its 52-week low of $6.905.
Summary
Ares private equity and credit funds are selling 15 million shares of Savers Value Village in a secondary offering, with an additional 2.25 million share greenshoe option. The company is not selling any shares and will not receive proceeds. Concurrently, Savers will repurchase $10 million of shares from the underwriters at the offering price, funded with cash on hand. J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Jefferies LLC and UBS Securities LLC are acting as joint book-running managers and underwriters for the offering. The offering size represents roughly 9% of shares outstanding, a meaningful liquidity event. Pricing and demand will be key to gauge near-term pressure on the stock.
At the time of this announcement, SVV was trading at $11.55 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $6.91 to $13.89. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.