PACER LAUNCHES $210-MILLION IPO AT $15 A SHARE
Pacer International Inc., a provider of freight transportation and logistics, has begun an initial public offering of 14 million shares of common stock at $15 a share.
According to a company statement, Pacer itself is selling 9.25 million shares, and 4.75 million are being sold “by certain institutional stockholders. The net proceeds to the company of the offering will be used to repay outstanding borrowings.”
Credit Suisse First Boston Corp. and Bear Stearns Cos. are the lead underwriters for Pacer’s IPO, which is being co-managed by Deutsche Bank Securities.
The selling stockholders have granted the underwriters a 30-day option to buy up to 2.1 million additional shares of common stock for the sole purpose of covering any over-allotments.
The company’s shares started to trade Thursday on Nasdaq under the symbol PACR.
Pacer, based in Concord, Calif., is selling to the public a 38 percent stake. The company has about 37 million shares outstanding.