Taglich Brothers is agent; deal funds debt repayment under revolver
By Devika Patel
Knoxville, Tenn., May 4 – BG Staffing, Inc. priced a $7 million public placement of stock, according to a prospectus supplement filed Monday with the Securities and Exchange Commission.
The company will sell up to 636,500 common shares at $11.00 apiece. The price per share is an 8.33% discount to the May 1 closing share price of $12.00.
Taglich Brothers, Inc. is the placement agent for the best efforts sale. Due to a conflict of interest, National Securities Corp. will act as qualified independent underwriter in accordance with Finra rules.
The company plans to use the proceeds to repay debt under the revolver portion of its senior credit facility with Fifth Third Bank.
BG Staffing had $4.9 million of borrowings outstanding at Dec. 28, 2014 and subsequently borrowed an additional $8.5 million to help fund its acquisition of D&W Talent, LLC.
The Plano, Texas, company provides temporary staffing services.
| Issuer: | BG Staffing, Inc.
|
| Issue: | Common stock
|
| Amount: | $7,001,500
|
| Shares: | 636,500
|
| Price: | $11.00
|
| Warrants: | No
|
| Agent: | Taglich Brothers, Inc.
|
| Pricing date: | May 4
|
| Settlement date: | Oct. 1
|
| Stock symbol: | OTCBB: BGSF
|
| Stock price: | $12.00 at close May 1
|
| Market capitalization: | $79.18 million
|
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