PGT, Inc. announced that JLL Partners Fund IV, L.P., which is the selling stockholder, has increased the size of the earlier announced underwritten secondary offering of 10 million shares to 11 million shares. The offering has been priced at $7.75 per share. The offering is expected to close today.
PGT will repurchase 6,791,171 shares from the selling stockholder at a price per share of $7.3625. The underwriters of the offering have an option to purchase up to 1,650,000 additional shares from the selling stockholder.
The selling stockholder who owns roughly 61.5% of PGT's outstanding common stock will receive all of the proceeds from the offering. No shares are being sold by PGT. The selling stockholder will own around 31.5% of common stock after completion of the offering and the share repurchase.
PGT, which belongs to the building and construction industry along with Owens Corning , Aegion Corporation and Armstrong World Industries, Inc. , expects to fund the share repurchase program and refinance its existing senior secured credit facilities with borrowings of about $80 million under new senior secured credit facilities. The completion of the share repurchase, the debt refinancing and the offering are all contingent on each other.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Raymond James & Associates, Inc., and RBC Capital Markets, LLC are acting as joint book-running managers for the notes offering, while SunTrust Robinson Humphrey, Inc. is acting as co-manager.
North Venice, Fla.-based PGT is the leading U.S. manufacturer and supplier of residential impact-resistant windows and doors. PGT's product line includes a variety of aluminum and vinyl windows and doors, which are ideal for new construction and replacement projects serving the residential, commercial, high-rise and institutional markets.
PGT currently retains a short-term Zacks Rank #2 (Buy).