Shoals Technologies Group, Inc. Announces Pricing of an Offering of 13,384,155 Shares of Class A Common Stock

Rhea-AI Summary

Shoals Technologies Group (Nasdaq: SHLS) announced a public offering of 13,384,155 shares of Class A common stock at $28.00 each. The offering includes 8,394,463 shares offered directly by the Company, with net proceeds aimed at purchasing equity interests from existing stockholders, including founder Dean Solon. The Company will not benefit financially from the 4,989,692 shares sold by current stockholders, including Oaktree Capital. Additionally, underwriters received an option for an extra 2,007,623 shares. The offering is set to close on July 19, 2021.

Positive

• Company raising capital through a public offering.
• Proceeds will be used to purchase equity from existing stockholders.

Negative

• Company will not receive proceeds from shares sold by selling stockholders.

PORTLAND, Tenn., July 15, 2021 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. (Nasdaq: SHLS) (the “Company”) today announced the pricing of an underwritten public offering of an aggregate of 13,384,155 shares of the Company’s Class A common stock, at a price to the public of $28.00 per share. The Company is offering 8,394,463 shares of its Class A common stock, the net proceeds of which will be used to purchase equity interests in its operating subsidiary from certain holders including its founder Dean Solon, Director Brad Forth, Chief Executive Officer Jason Whitaker and Chief Financial Officer Philip Garton (collectively, the “Existing Stockholders”). Additionally, certain selling stockholders, including an entity controlled by Oaktree Capital Management, L.P. (“Oaktree”) and Mehgan Peetz, the Company’s General Counsel (the “Selling Stockholders”), are offering 4,989,692 shares of the Company’s Class A common stock. The Company will not receive any of the proceeds from the sale of shares offered by the Selling Stockholders.   The Company also granted the underwriters a 30-day option to purchase up to an additional 2,007,623 shares of Class A common stock.   The Company’s Class A common stock is listed on the Nasdaq Global Market under the symbol “SHLS.” The offering is expected to close on July 19, 2021, subject to customary closing conditions.

Goldman Sachs & Co. LLC, J.P. Morgan, Guggenheim Securities and UBS Investment Bank are acting as joint book-running managers and Goldman Sachs & Co. LLC, J.P. Morgan and Guggenheim Securities are acting as representatives of the underwriters for the offering. Morgan Stanley, Credit Suisse and Barclays are also acting as book-runners. Cowen, Oppenheimer & Co. Inc., Piper Sandler, Johnson Rice & Company L.L.C. and Roth Capital Partners are acting as co-managers.

A registration statement relating to this offering was declared effective by the Securities and Exchange Commission on July 14, 2021. This offering is being made only by means of a prospectus, copies of which may be obtained, when available, from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282 (telephone: (866) 471-2526 or email: prospectus-ny@ny.email.gs.com); J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (telephone: 1-866-803-9204), or by email at prospectus-eq_fi@jpmchase.com; and Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison, 8th Floor, New York, NY 10017, by telephone at (212) 518-9658, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

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

About Shoals Technologies Group, Inc.

Shoals Technologies Group, Inc. is a leading provider of electrical balance of systems solutions for solar, storage, and electric vehicle charging infrastructure. Since its founding in 1996, the Company has introduced innovative technologies and systems solutions that allow its customers to substantially increase installation efficiency and safety while improving system performance and reliability. Shoals Technologies Group, Inc. is a recognized leader in the renewable energy industry whose solutions are deployed on over 20 GW of solar systems globally.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the secondary offering. These statements are not historical facts but rather are based on the Company’s current expectations and projections regarding its business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including, but not limited to, those in the Company’s registration statement filed with the Securities and Exchange Commission and those described under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which are available free of charge on the Securities and Exchange Commission’s website at: www.sec.gov.

Contacts

Investors:
Email: investors@shoals.com

Media:
Email: media@shoals.com

FAQ

What is the price of the Shoals Technologies Group stock offering?

The public offering price is $28.00 per share.

How many shares is Shoals Technologies Group offering?

The Company is offering a total of 13,384,155 shares.

When is the Shoals Technologies Group offering expected to close?

The offering is expected to close on July 19, 2021.

What will Shoals Technologies Group do with the proceeds from the offering?

Net proceeds will be used to purchase equity interests from existing stockholders.

Who are the selling stockholders in the Shoals Technologies Group offering?

Selling stockholders include Oaktree Capital and the Company's General Counsel, Mehgan Peetz.