CarParts.com Announces Closing of Public Offering of Common Stock and Full Exercise of the Underwriters' Over-Allotment Option

Rhea-AI Summary

CarParts.com (NASDAQ: PRTS) announced the closing of its public offering of 6.9 million shares of common stock, priced at $13.00 per share, totaling gross proceeds of $63.7 million. The offering included the underwriters' option for an additional 900,000 shares. CarParts.com sold 4.9 million shares while a selling stockholder sold 2 million shares. The proceeds are intended to support the company's growth initiatives. RBC Capital Markets acted as the sole book-runner of the offering.

Positive

• Gross proceeds from the offering were $63.7 million, supporting growth initiatives.

Negative

• Potential dilution of existing shareholders due to the sale of 6.9 million shares.

TORRANCE, Calif., Aug. 18, 2020 /PRNewswire/ -- CarParts.com, Inc. (NASDAQ: PRTS) ("CarParts.com"), one of the leading e-commerce providers of automotive parts and accessories, today announced the closing of its underwritten public offering of 6,900,000 shares of its common stock at a price to the public of $13.00 per share, which includes the full exercise of the underwriters' option to purchase up to 900,000 additional shares of common stock.  CarParts.com sold 4,900,000 shares of its common stock and the selling stockholder sold 2,000,000 shares of common stock. The gross proceeds to CarParts.com from the offering, before underwriting discounts and commissions and offering costs, was $63,700,000.  CarParts.com did not receive any proceeds from the sale of the shares by the selling stockholder. 

RBC Capital Markets acted as the sole book-runner, and Craig-Hallum Capital Group acted as the sole lead manager for the offering. D.A. Davidson & Co. and Roth Capital Partners acted as co-managers for the offering.

The securities described above were sold pursuant to an effective shelf registration statement on Form S-3 (No. 333-240467) that was declared effective by the Securities and Exchange Commission (the "SEC") on August 11, 2020. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC's website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus, may also be obtained by request from RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, New York, New York 10281-8098, or by fax at (212) 428-6260; or from Craig-Hallum Capital Group at 222 South Ninth Street, Suite 350, Minneapolis, Minnesota 55402, Attention: Equity Capital Markets, by telephone at 612-334-6300, or by email prospectus@chlm.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered in any state or other 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 other jurisdiction.

About CarParts.com

For over 20 years, CarParts.com has been a leader in the e-commerce automotive aftermarket, providing collision, engine, and performance parts and accessories. With over 50 million parts delivered, we've helped everyday drivers across the contiguous United States find the right parts to keep their vehicles on the road.

With a focus on the end-to-end customer experience, we've designed our website and sourcing network to simplify the way drivers get the parts they need. Our vehicle selector and easy-to-navigate, mobile-friendly website offer customers guaranteed fitment and a convenient online shopping experience. And with our own wide distribution network, we bring the very best brands and manufacturers directly to consumer hands, cutting out all the brick-and-mortar supply chain costs to provide quality parts at a discount for our loyal customers. Combined with our 90-day return policy and satisfaction guarantee, CarParts.com makes it simple for customers to get parts delivered straight to their door. CarParts.com is headquartered in Torrance, California.

Investor Relations:

Sean Mansouri, CFA or Cody Slach
Gateway Investor Relations
949-574-3860
PRTS@gatewayir.com

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SOURCE CarParts.com, Inc.

FAQ

What is the total gross proceeds from CarParts.com public offering on August 18, 2020?

The total gross proceeds from CarParts.com's public offering were $63.7 million.

How many shares were sold in the CarParts.com offering?

A total of 6,900,000 shares were sold in the public offering.

What was the price per share for CarParts.com's public offering?

The price per share for CarParts.com's public offering was $13.00.

Who was the sole book-runner for the CarParts.com offering?

RBC Capital Markets acted as the sole book-runner for CarParts.com's offering.

What does the public offering by CarParts.com imply for existing shareholders?

The public offering may lead to potential dilution of existing shareholders due to the increased number of shares.