G-III Apparel Group Ltd.’s underwritten public offering of common stock will be priced at $77.63 a share and is expected to generate approximately $111.8 million in proceeds to the firm.
Subject to customary closing conditions, the offering is expected to close on June 30. In addition to the 1.5 million shares of common stock offered to the public, G-III has granted the underwriters a 30-day option to purchase up to 225,000 additional shares from the company.
Shares of G-III closed Tuesday at $77.63, down 3.4 percent, just prior to the disclosure of the offering price.
Proceeds will be used for general corporate purposes, including future acquisitions. G-III said it intends to pay down outstanding debt under its credit agreement and invest the balance in short-term investment-grade securities. G-III has a five-year senior secured credit facility with J.P. Morgan Chase for a principal amount of $450 million, $160.9 million of which was available as of April 30.
Barclays Capital and Piper Jaffray & Co. are bookrunning managers for the offering and Barclays Capital will serve as the sole representatives of the underwriters. KeyBank Capital Markets, Brean Capital, Cowen & Co. and Stephens Inc. will serve as co-managers.