Corsair Gaming, Inc. Launches Public Offering of Common Stock

Rhea-AI Summary

Corsair Gaming, Inc. (NASDAQ: CRSR) has announced an underwritten public offering of $75.0 million in shares of its common stock, with an option for underwriters to purchase an additional $11.25 million. The net proceeds will be used for general corporate purposes. Notably, EagleTree, Corsair's majority shareholder, has shown interest in acquiring up to $40.0 million of shares in this offering. The offering depends on market conditions, and there are no guarantees regarding its completion or terms.

Positive

• EagleTree indicated interest to purchase up to $40.0 million in shares, signaling potential support from a major shareholder.

Negative

• The offering could dilute existing shareholders' equity.
• The proposal is subject to market conditions, with no assurance on completion or final terms.

MILPITAS, Calif.--(BUSINESS WIRE)-- Corsair Gaming, Inc. (Nasdaq: CRSR) (“Corsair”), a leading global provider and innovator of high-performance gear for gamers and content creators, announced today that it has launched an underwritten public offering of $75.0 million of its shares of common stock. All of the shares of common stock are being offered by Corsair. In addition, Corsair intends to grant the underwriters a 30-day option to purchase up to an additional $11.25 million of its shares of common stock. Corsair currently intends to use the net proceeds that it will receive from the offering for general corporate purposes. The offering is subject to market and other conditions, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.

Goldman Sachs & Co. LLC is acting as sole book-running manager for the offering.

Corsair Group (Cayman), LP (“EagleTree”), which owns a majority of our outstanding shares and through its general partner is managed by affiliates of EagleTree Capital, LP, has indicated its interest to purchase up to $40.0 million of shares of our common stock in this offering at the same price and on the same terms as the other purchasers in this offering. Because this indication of interest is not a binding agreement or commitment to purchase, EagleTree may purchase more, fewer, or no shares in the offering or the underwriters and the company could determine to sell more, less or no shares to EagleTree.

A registration statement relating to the shares to be sold in the proposed offering has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective on August 1, 2022. This offering will be made only by means of a prospectus. A copy of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, a copy of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at 1-866-471-2526 or by e-mail at prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering, the grant of the option to the underwriters to purchase additional shares and the intended use of the proceeds. Forward-looking statements represent Corsair’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including the trading price and volatility of Corsair’s common stock and risks relating to Corsair’s business and, if the offering is priced, risks related to the satisfaction of closing conditions in the underwriting agreement related to the offering. Corsair may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offer. The forward-looking statements included in this press release speak only as of the date of this press release, and Corsair does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221114006051/en/

Investor Relations:

Ronald van Veen

ir@corsair.com

510-578-1407

Media:

David Ross

david.ross@corsair.com

+44-11-820-0542

Source: Corsair Gaming, Inc.

FAQ

What is the size of Corsair's public offering announced recently?

Corsair is offering $75.0 million in shares of its common stock.

Who is the underwriter for Corsair's stock offering?

Goldman Sachs & Co. LLC is the sole book-running manager for the offering.

What will Corsair do with the proceeds from the stock offering?

The net proceeds will be used for general corporate purposes.

Has Corsair's majority shareholder shown interest in the offering?

Yes, EagleTree has indicated interest in purchasing up to $40.0 million in shares at the same pricing terms.

What does Corsair's stock offering mean for existing shareholders?

The offering may dilute existing shareholders' equity depending on the final terms and completion of the offering.