The nationwide trucker and third-party logistics provider said it hopes to raise between $281 million and $359 million with the initial public offering, and provided details on how it plans to use the proceeds.
Green Bay, Wis.-based Schneider National, Inc., which is one of the largest trucking and intermodal companies in the nation, said it hopes to raise between $281 million and $359 million with an initial public offering of its Class B common stock.
In a filing with the Securities and Exchange Commission, Schneider said it plans to use approximately $100 million of the net proceeds from the offering to repay a senior note, $50 million to repay an amended and restated receivables purchase agreement, and the remainder for general corporate purposes, including $110 million as part of a conversion from a rented chassis model to a company-owned chassis model.
Schneider operates with a truckload fleet of approximately 11,900 trucks and 37,900 trailers. Its intermodal segment has 1,250 trucks, 17,700 dry van intermodal containers and 6,300 company-owned chassis.
Schneider’s operating revenues for 2016 totaled $4.05 billion, a 2.2 percent jump from 2015. In 2016, the company’s truckload segment accounted for 52 percent of its revenues, followed by intermodal at 19 percent, and logistics at 18 percent. (The company has revenue from fuel charges and from other businesses as well).
“This increase was primarily due to increased volume in our truckload and logistics segments and our acquisition of Watkins & Shepard and Lodeso as part of our truckload segment in June 2016, offset by volume and price declines in our intermodal segment,” Schneider said.
Net profits for 2016 reached $156.9 million, 11.3 percent more than 2015.
Schneider said that converting from a rented chassis to a company-owned chassis model “will lower our all-in chassis operating costs, improve service reliability, as well as increase driver efficiency and satisfaction, by increasing our control over the chassis.”
The company said it plans to sell 16.842 million Class B shares in a range of $18-$20 per share. Existing shareholders are expected to sell 12.105 million Class B shares. Underwriters have a 30-day option to purchase an additional 4.34 million Class B shares.
Current owners will still have tight control over the company after the stock offering. When completed, the company will have over 83 million shares of Class A common stock, each of which are entitled to 10 votes per share compared to just 1 vote for each Class B share.
“Upon the consummation of this offering, assuming that the underwriters do not exercise the over-allotment option, the Schneider family, including trusts established for the benefit of members of the Schneider family, will collectively beneficially own 100 percent of our outstanding Class A common stock and 46.9 percent of our outstanding Class B common stock, representing approximately 94.8 percent of the total voting power of all of our outstanding common stock and approximately 72.3 percent of our total outstanding common stock,” the prospectus says.
Schneider National launches IPO
