REV Group, Inc. Announces Pricing of Upsized Secondary Offering of Common Stock and Concurrent Share Repurchase

Rhea-AI Summary

REV Group, Inc. (NYSE:REVG) announces the pricing of an upsized underwritten public offering of 16,000,000 shares of common stock at $16.50 per share. Selling stockholders are offering the shares, with an option for underwriters to purchase additional shares. REV Group will not receive any proceeds from the offering.

Insights

Financial Analyst

The upsizing of the public offering to 16,000,000 shares by certain selling stockholders of REV Group, Inc. at $16.50 per share indicates a substantial liquidity event for those shareholders. This activity can have several implications for the current and potential investors. Firstly, the large volume of shares being sold could potentially dilute the value of existing shares or indicate that major shareholders are looking to exit or reduce their positions, which can sometimes be interpreted as a lack of confidence in the company's future prospects.

Moreover, the grant of an option for underwriters to purchase additional shares could lead to further dilution if exercised. However, it's also a common practice to stabilize the share price post-offering. It is essential to consider the company's recent financial performance and market conditions to understand the potential impact of this offering on the stock price.

Market Research Analyst

From a market perspective, the decision by REV Group's selling stockholders to not only upsize the offering but also to set a fixed price of $16.50 per share provides a clear signal to the market regarding valuation. This fixed price offering can be compared to the current market price to gauge investor sentiment and market reception. If the offering price is at a discount to the current trading price, it could attract interest from investors looking for an entry point, albeit with consideration for the reasons behind the selling stockholders' decision to sell.

It's also important to analyze the competitive landscape and sector performance to evaluate if the funds from these selling stockholders might be redirected into other areas of the market, which could in turn influence sector dynamics and capital flows within the industry.

MILWAUKEE--(BUSINESS WIRE)-- REV Group, Inc. (NYSE:REVG) announced today the pricing of the previously announced underwritten public offering, which has been upsized to 16,000,000 shares of common stock by certain selling stockholders at the public offering price of $16.50 per share. In connection with the offering, the selling stockholders have granted the underwriters an option to purchase up to 2,400,000 additional shares of common stock from the selling stockholders. REV Group is not selling any shares of common stock in the offering, and REV Group will not receive any proceeds from the offering by the selling stockholders. The offering is expected to close on or about February 20, 2024, subject to customary closing conditions.

Baird, Goldman Sachs & Co. LLC and Morgan Stanley are serving as joint book-running managers for the offering. D.A. Davidson & Co. is acting as co-manager for the offering.

REV Group has agreed to purchase from the underwriters 8,000,000 of the shares of its common stock that are subject to the offering at a price per common share equal to the price to be paid to the selling stockholders by the underwriters, which is approximately $15.76 per common share. REV Group intends to fund the repurchase with cash on hand and borrowings under its revolving credit agreement.

A registration statement on Form S-3 (File No. 333-276009) relating to the shares of common stock of REV Group to be sold in the proposed offering was declared effective by the Securities and Exchange Commission (the “SEC”) on December 19, 2023. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering have been filed with the SEC and may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or by contacting Baird, 777 East Wisconsin Avenue, Milwaukee, WI 53202, Attention: Syndicate Department, Telephone: 800-792-2473, Email: syndicate@rwbaird.com, Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282-2198, Attention: Prospectus Department, Telephone: 866-471-2526, Email: Prospectus-ny@ny.email.gs.com, Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, Attention: Prospectus Department, or D.A. Davidson & Co., Attention: Equity Syndicate, 8 Third Street North, Great Falls, MT 59401, Telephone: 800-332-5915, Email: prospectusrequest@dadco.com. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy 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.

About REV Group

REV Group (REVG) is a leading designer, manufacturer and distributor of specialty vehicles and related aftermarket parts and services. We serve a diversified customer base, primarily in the United States and Canada, through two segments: Specialty Vehicles and Recreational Vehicles. We provide customized vehicle solutions for applications, including essential needs for public services (ambulances and fire apparatus), commercial infrastructure (terminal trucks and industrial sweepers) and consumer leisure (recreational vehicles). Our diverse portfolio is made up of well-established principal vehicle brands, including many of the most recognizable names within their industry. Several of our brands pioneered their specialty vehicle product categories and date back more than 50 years. REV Group trades on the NYSE under the symbol REVG.

View source version on businesswire.com.

Source: REV Group, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214787133/en/

REV Group, Inc.

Drew Konop, 1-888-738-4037 (1-888-REVG-037)

investors@revgroup.com

Source: REV Group, Inc.

FAQ

What is the ticker symbol for REV Group?

The ticker symbol for REV Group is REVG.

How many shares of common stock are being offered in the public offering by certain selling stockholders?

Certain selling stockholders are offering 16,000,000 shares of common stock.

At what price are the shares of common stock being offered?

The shares of common stock are being offered at a price of $16.50 per share.

Will REV Group receive any proceeds from the public offering?

No, REV Group will not receive any proceeds from the offering by the selling stockholders.

Is there an option for underwriters to purchase additional shares in the offering?

Yes, underwriters have been granted an option to purchase up to 2,400,000 additional shares of common stock from the selling stockholders.