Vince Holding Raises $177 Mln In Net Proceeds From IPO

(RTTNews) - Vince Holding Corp. (VNCE), previously known as Apparel Holding Corp., said Wednesday that it has closed its initial public offering of 10 million shares of its common stock at a price of $20.00 per share.

In connection with the initial public offering, the underwriters exercised in full their option to purchase an additional 1.5 million shares of common stock from affiliates of Sun Capital Partners, Inc.

As a result, the total initial public offering size was 11.5 million shares. Vince received proceeds, net of underwriters' discount and commissions and estimated offering expenses payable by Vince, of about $177 million from the offering. Vince retained about $5.0 million of such net proceeds for general corporate purposes and used the remaining net proceeds, together with net borrowings under its new term loan facility to repay a promissory note issued to Kellwood Company in connection with the restructuring which occurred immediately prior to the consummation of the initial public offering. Proceeds from the repayment of the Kellwood Note Receivable were used, to repay or discharge certain existing debt of Kellwood Company. Vince did not receive any proceeds from the sale of shares by the Selling Stockholders.

Concurrently with the closing of the initial public offering, Vince entered into a $175 million term loan, net borrowings from which were used to repay the Kellwood Note Receivable, and a $50 million revolving credit facility.