Milwaukee-based specialty vehicle maker REV Group Inc. hopes to raise $231.4 million in its initial public offering and use the money to pay down long-term debt.
Milwaukee BizTimes reported that the company plans to offer 12.5 million shares of common stock in the offering and is expecting it to be priced between $19 and $21 per share.
The midpoint of that range would give the company $231.4 million in proceeds after expenses and underwriting discounts. A $1 per share change in the price would increase or decrease the proceeds by $11.7 million.
REV Group plans to use approximately $192.1 million to pay off its outstanding senior secured notes, which have a fixed interest rate of 8.5% and mature on Nov. 1, 2019. The company will also use up to $39.3 million to pay on its asset-based loans.
The potential total proceeds from the IPO represent a significant increase over the company’s initial filings, which suggested it would raise $100 million.
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