Academy Sports + Outdoors Announces Pricing of Secondary Offering

Rhea-AI Summary

Academy Sports and Outdoors has priced a secondary offering of 12 million shares at $21.50 each, with proceeds going to selling stockholders, including KKR affiliates. The underwriters also have a 30-day option to purchase an additional 1.8 million shares. No Academy shares are being sold directly. The offering is set to close on February 1, 2021. Credit Suisse, J.P. Morgan, and others are leading the offering. This move is structured under a registration statement declared effective by the SEC.

Positive

• Successful pricing of a secondary offering at $21.50 per share, indicating strong interest.
• Potential additional shares (1.8 million) available through underwriters' option.

Negative

• No proceeds going to Academy, which limits potential capital for business expansion.
• Secondary offering may dilute existing shareholders' equity.

KATY, Texas, Jan. 27, 2021 /PRNewswire/ -- Academy Sports and Outdoors, Inc. ("Academy") (NASDAQ: ASO) today announced the pricing of the previously announced underwritten secondary offering by certain of its stockholders (the "Selling Stockholders"), including affiliates of Kohlberg Kravis Roberts & Co. L.P., of 12 million shares of common stock of Academy pursuant to a registration statement filed by Academy with the U.S. Securities and Exchange Commission (the "SEC"), at the public offering price of $21.50 per share. The Selling Stockholders have granted the underwriters a 30-day option to purchase up to an additional 1.8 million shares of Academy's common stock. No shares are being sold by Academy. The Selling Stockholders will receive all of the proceeds from this offering. The offering is expected to close on February 1, 2021, subject to customary closing conditions.

Credit Suisse, J.P. Morgan, KKR Capital Markets and BofA Securities are acting as joint bookrunning managers for the proposed offering. Evercore ISI, Guggeheim Securities, UBS Investment Bank and Wells Fargo Securities are acting as bookunners. Stephens Inc. is acting as co-manager.

The offering of these securities will be made only by means of a prospectus. Copies of the prospectus may be obtained from: Credit Suisse Securities (USA) LLC,  Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, by telephone at 800-221-1037, or by email at usa.prospectus@credit-suisse.com; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at 866-803-9204, or by email at prospectus-eq_fi@jpmchase.com.

A registration statement, including a prospectus, relating to these securities has been declared effective by the SEC. This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Academy
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States.  Originally founded in 1938 as a family business in Texas, Academy has grown to 259 stores across 16 contiguous states.  Academy's mission is to provide "Fun for All" and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers.  Academy's product assortment focuses on key categories of outdoor, apparel, footwear and sports & recreation through both leading national brands and a portfolio of 17 private label brands, which go well beyond traditional sporting goods and apparel offerings.

Forward Looking Statements
The statements contained in this press release that are not historical facts are forward-looking statements.  These forward-looking statements are based on Academy's current expectations and are not guarantees of future performance.  The forward-looking statements are subject to various risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify.  Actual results may differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond Academy's control.  Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including its registration statement on Form S-1, as amended from time to time.  Any forward-looking statement in this press release speaks only as of the date of this release.  Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

 

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SOURCE Academy Sports + Outdoors

FAQ

What is the stock price for ASO's secondary offering?

The stock price for the secondary offering is set at $21.50 per share.

Who are the selling stockholders in Academy Sports' offering?

The selling stockholders include affiliates of Kohlberg Kravis Roberts & Co. L.P.

When will the secondary offering for ASO close?

The offering is expected to close on February 1, 2021.

How many shares are being offered in the ASO secondary offering?

A total of 12 million shares are being offered, with an option for an additional 1.8 million shares.

What is the purpose of the secondary offering by Academy Sports?

The proceeds from the secondary offering will go to the selling stockholders, not to Academy.