Movie Gallery Plans Stock Offering11 Apr, 2002 By: Hive News
Movie Gallery, Inc. has filed a registration statement with the Securities and Exchange Commission to offer of 8,250,000 shares of common stock.
The management plans to repay debt, increase working capital and put the money toward strategic acquisitions, new store openings and other general corporate purposes, the company reported.
The company is offering 3.9 million shares and selling stockholders are offering 4,350,000 shares. Of the shares to be offered by the selling stockholders, 3 million shares will be offered former Movie Gallery president H. Harrison Parrish, 1 million shares will be offered CEO Joe Malugen, and 350,000 shares will be offered by certain members of the management team. In addition, Parrish and Malugen will grant the underwriters an option to purchase a total of up to 1,237,500 additional shares to cover overallotments, if any.
Bear, Stearns & Co. Inc. and Thomas Weisel Partners LLC are acting as joint book-running managers for the offering. Morgan Keegan & Company, Inc., BB&T Capital Markets and SWS Securities are acting as co-managers.
The securities may not be sold nor may offers to buy be accepted prior to the Securities and Exchange Commission approval.
Movie Gallery owns and operates 1,462 specialty in 41 states and five Canadian provinces.