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Conn's prices stock offering at $26.75 per share

Published on NewsOK Modified: December 7, 2012 at 7:08 am •  Published: December 7, 2012
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THE WOODLANDS, Texas (AP) — The retailer Conn's Inc. on Friday increased the size of its public offering of common stock by 500,000 shares to 5.5 million and priced it at $26.75 per share.

The price represents a 2 percent discount to the company's Thursday closing stock price of $27.40.

Of the 5.5 million shares, Conn's is selling 1.4 million and the certain shareholders are selling 4.1 million. The offering was originally expected to cover 5 million shares, but the selling shareholders increased the number of shares they planned to sell, Conn's said.

The company also granted the offering's underwriters, Piper Jaffray & Co. and Stephens Inc., a 30-day option to buy up to an additional 825,000 shares to cover possible overallotments.

Conn's expects its net proceeds from the offering to total about $35.2 million, after deducting estimated underwriting discounts and commissions and offering expenses. The company plans to use the proceeds mainly for the repayment of debt and for the payment of expenses and fees related to the offering.

Conn's will not receive any proceeds from the sale of shares of stock offered by the selling stockholders. The offering is expected to close on or around Wednesday.

The Woodlands, Texas-based Conn's sells furniture, mattresses, home appliances, consumer electronics and other items.

Its shares rose 15 cents to $27.55 in premarket trading after falling as low as $26.80 earlier.