Offering also has $26.1 million greenshoe; shares sold at $0.90 apiece
By Devika Patel
Knoxville, Tenn., April 26 - American Apparel, Inc. said it plans a private placement of stock, which will raise $14.9 million. The deal also has a greenshoe for $26.1 million.
The company will sell about 16.6 million common shares at $0.90 per share. The per-share price is a 43.04% discount to $1.58, the April 25 closing share price.
Investors include company chief executive Dov Charney, as well as Michael Serruya and Delavaco Capital.
Proceeds will allow the company to take advantage of improving business conditions, while at the same time meeting increased bank-required reserves.
The company is also in discussions with its lenders to amend its credit agreements with Bank of America and Lion Capital. Among other things, the amendments are expected to increase the minimum excess availability requirement to $12.5 million from $7.5 million.
American Apparel is a Los Angeles-based manufacturer, distributor and retailer of branded fashion basic apparel.
| Issuer: | American Apparel, Inc.
|
| Issue: | Common shares
|
| Amount: | $14.9 million
|
| Greenshoe: | $26.1 million (approximate)
|
| Shares: | 16.6 million (approximate)
|
| Price: | $0.90
|
| Warrants: | No
|
| Investors: | Dov Charney, Michael Serruya and Delavaco Capital
|
| Announcement date: | April 26
|
| Stock symbol: | Amex: APP
|
| Stock price: | $1.58 at close April 25
|
| Market capitalization: | $112.73 million
|
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