Roundy's Inc. said it has priced its initial public offering of 19.18 million shares at a price of $8.50 per share. The shares would be listed on the New York Stock Exchange and would trade under the symbol "RNDY" beginning February 8, 2012. Roundy's is offering 14.7 million shares and selling stockholders are offering 4.47 million shares.
The underwriters have a 30-day option to buy up to an additional 2.88 million shares from the selling stockholders to cover over-allotments. Roundy's would not receive any proceeds from the sale of shares by the selling stockholders.
The company expects to receive proceeds, net of underwriters' discount and commissions and estimated offering expenses payable by Roundy's, of nearly $111.15 million from the offering. Also, Roundy's plans to use the net proceeds, together with borrowings under its new senior credit facility, to repay all of its outstanding borrowings and other amounts owed under its existing credit facilities.
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