First Advantage Announces Pricing of Secondary Offering of Common Stock

Rhea-AI Summary

First Advantage Corporation (NASDAQ: FA) announced a secondary offering of 15,000,000 shares at $20.00 per share, conducted by certain stockholders, including Silver Lake Group affiliates. A 30-day underwriter option for an additional 2,250,000 shares is included. The offering, set to close on November 15, 2021, will not involve any shares from First Advantage, meaning proceeds will go entirely to the selling stockholders. Barclays and BofA Securities lead the offering, which is registered with the SEC.

Positive

• Secondary offering pricing at $20.00 per share indicates strong demand.
• Underwriters have an option to purchase an additional 2,250,000 shares, potentially increasing market liquidity.

Negative

• No shares are being sold by First Advantage, which may imply a lack of capital raising for company growth.
• Potential dilution of existing shares due to the secondary offering.

ATLANTA, Nov. 10, 2021 (GLOBE NEWSWIRE) -- First Advantage Corporation (“First Advantage”) (NASDAQ: FA), a leading global provider of technology solutions for screening, verifications, safety and compliance related to human capital, today announced the pricing of the previously announced underwritten secondary offering by certain of its stockholders (the “Selling Stockholders”), including affiliates of Silver Lake Group, L.L.C., of 15,000,000 shares of common stock of First Advantage pursuant to a registration statement filed by First Advantage with the U.S. Securities and Exchange Commission (the “SEC”), at the public offering price of $20.00 per share. The Selling Stockholders have granted the underwriters in the offering a 30-day option to purchase up to an additional 2,250,000 shares of common stock. No shares are being sold by First Advantage. The Selling Stockholders will receive all of the proceeds from this offering. The offering is expected to close on November 15, 2021, subject to customary closing conditions.

Barclays and BofA Securities are acting as lead bookrunners for the offering. Citigroup, Evercore ISI, Jefferies, RBC Capital Markets, Stifel and HSBC are acting as bookrunners, and Citizens Capital Markets, KKR Capital Markets LLC, MUFG, Loop Capital Markets, R. Seelaus & Co., LLC, Ramirez & Co., Inc. and Roberts & Ryan are acting as co-managers for the offering.

A registration statement on Form S-1 relating to the offering has been filed with and declared effective by the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

The offering is being made only by means of a prospectus. Copies of the prospectus related to the offering can be obtained, when available, from: Barclays Capital Inc., Attn: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 888-603-5847, or by email at Barclaysprospectus@broadridge.com; or BofA Securities, Inc., Attn: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, North Carolina, 28255-0001, by email at dg.prospectus_requests@bofa.com.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify, including those described under the “Risk Factors” under First Advantage’s registration statement relating to the offering. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

About First Advantage

First Advantage (NASDAQ: FA) is a leading global provider of technology solutions for screening, verifications, safety, and compliance related to human capital. First Advantage delivers innovative solutions and insights that help customers manage risk and hire the best talent. Enabled by its proprietary technology platform, First Advantage’s products and solutions help companies protect their brands and provide safer environments for their customers and their most important resources: employees, contractors, contingent workers, tenants, and drivers. Headquartered in Atlanta, Georgia, First Advantage performs screens in over 200 countries and territories on behalf of its more than 30,000 customers.

Contacts

Investors:

Stephanie D. Gorman
Vice President, Investor Relations
Stephanie.Gorman@fadv.com
(888) 314-9761

Media:

Elisabeth Warrick
Senior Brand Communications Manager
Elisabeth.Warrick@fadv.com
(888) 314-9761

FAQ

What is the current stock price for First Advantage (FA)?

The current stock price for First Advantage (FA) is $20.00 per share as per the recent offering.

When will the secondary offering for First Advantage close?

The secondary offering for First Advantage is expected to close on November 15, 2021.

Who are the underwriters for First Advantage's secondary offering?

Barclays and BofA Securities are acting as the lead bookrunners for the offering.

How many shares are being sold in the First Advantage offering?

A total of 15,000,000 shares of common stock are being sold in the First Advantage offering.

Is First Advantage raising capital through this offering?

No, First Advantage is not selling any shares; the proceeds will go entirely to the selling stockholders.