LendingTree stands to earn as much as $91.4 million based on its pricing for a common stock offering that is expected to close Nov. 12.
The Charlotte, N.C.-based company plans to sell 850,000 shares in the underwritten offering at a price to the public of $115 per share. Total proceeds from the offering are expected to be $77.6 million net underwriting discounts, commissions and other offering expenses, but could reach more than $91 million if the underwriters take the option to purchase an additional 127,500 shares up to 30 days after the offering. On Nov. 6, when the offering was priced, LendingTree's common stock closed at $120.25 per share.
Of the 850,000 shares initially offered, 725,000 will be issued and sold by the company, while 125,000 will be sold by a selling stockholder.
The company plans to use the offering's proceeds for general corporate purposes including working capital and potential acquisitions. The company will receive no proceeds from the shares sold by the unnamed selling stockholder.
Bank of America Merrill Lynch, RBC Capital Markets and SunTrust Robinson Humphrey were joint book-running managers for the offering. Guggenheim Securities, Needham & Company and Stephens acted as the offering's co-managers.
