REV Group, Inc. Announces Proposed Secondary Offering of Common Stock

Rhea-AI Summary

REV Group, Inc. (NYSE:REVG) has initiated an underwritten public offering of 7,500,000 shares of common stock by selling stockholders, with an additional option for underwriters to purchase up to 1,125,000 more shares. REV Group will not sell shares nor receive proceeds from this offering. The offering depends on market conditions. Goldman Sachs & Co. LLC and Morgan Stanley are the joint book-running managers. The SEC has declared the related registration statement effective, and details can be found in the preliminary prospectus filed with the SEC.

Positive

• The offering allows selling stockholders to liquidate investments.
• The involvement of reputable underwriters like Goldman Sachs and Morgan Stanley may enhance market confidence.

Negative

• REV Group will not benefit from any proceeds, limiting its capital for growth.
• The secondary offering may lead to share dilution for existing investors if additional shares are sold.

REV Group, Inc. (NYSE:REVG) announced today the commencement of an underwritten public offering of 7,500,000 shares of common stock by certain selling stockholders. In connection with the offering, the selling stockholders intend to grant the underwriters an option to purchase up to 1,125,000 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 proposed offering is subject to market and other conditions, as well as customary closing conditions.

Goldman Sachs & Co. LLC and Morgan Stanley are serving as joint book-running managers for the proposed offering.

A registration statement on Form S-3 (File No. 333-255153) 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 April 30, 2021. 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 Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282-2198, Attention: Prospectus Department, Telephone: 866-471-2526, Email: Prospectus-ny@ny.email.gs.com or Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, Attn: Prospectus Department. 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, through three segments: Fire & Emergency, Commercial, and Recreation. We provide customized vehicle solutions for applications, including essential needs for public services (ambulances, fire apparatus, school buses, and transit buses), commercial infrastructure (terminal trucks, industrial sweepers, transportation services) and consumer leisure (recreational vehicles and ‘RVs’). 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: https://www.businesswire.com/news/home/20210609005893/en/

FAQ

What is the purpose of REV Group's public offering of 7,500,000 shares?

The public offering allows certain stockholders to sell their shares, providing them liquidity.

Who are the underwriters for REV Group's stock offering?

Goldman Sachs & Co. LLC and Morgan Stanley are serving as joint book-running managers for the offering.

Will REV Group receive any proceeds from the stock offering?

No, REV Group will not receive any proceeds as the offering is conducted by selling stockholders.

What is the potential impact of this offering on REV Group's stock price?

The offering could dilute existing shareholders' ownership if additional shares are sold, potentially affecting the stock price.

How many additional shares can underwriters purchase in REV Group's offering?

Underwriters have the option to purchase up to 1,125,000 additional shares of common stock.