Roundy’s makes public offering of 8.8 million shares

Milwaukee -- Roundy’s, Inc. has set the pricing of an underwritten public offering of about 8.8 million shares of its common stock at a price to the public of $7 per share. The company is offering 2.9 million shares of its common stock, and certain selling stockholders are offering 5.9 million shares of Roundy’s common stock.

The underwriters have been granted a 30-day option to purchase up to an additional 1.3 million shares of common stock from the selling stockholders, all at the offering price less the underwriting discount. The offering is expected to close on Feb. 12, 2014.

Roundy’s intends to use the net proceeds for general corporate purposes, which it expects to include funding working capital and operating expenses, as well as capital expenditures to build out the Chicago stores acquired from Safeway. The company will not receive any of the proceeds from the sale of shares by the selling stockholders, including the shares to be sold by the selling stockholders if the underwriters exercise their over-allotment option.

Credit Suisse and J.P. Morgan, along with BofA Merrill Lynch and BMO Capital Markets, are acting as joint bookrunning managers for the offering. Baird is acting as lead manager.


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