NORTH VENICE, Fla. (AP) -- PGT Inc. said Thursday that one of its largest shareholders plans to sell 10 million shares of the company's common stock in an underwritten secondary offering.
The North Venice, Fla.-based window and door maker said the shares are being sold by JLL Partners Fund IV LP, an investment firm that owns about 61.5 percent of PGT's outstanding common stock.
The underwriters of the offering — Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Raymond James & Associates Inc., and RBC Capital Markets LLC — also have an option to buy up to 1.5 million additional shares. PGT is not selling any shares, and JLL Partners will receive all proceeds from the offering.
PGT also said that it reached a deal with JLL Partners to buy back $50 million of its stock at the same time at a price per share equal to the offering price, less underwriting discounts and commissions.
PGT said it plans to fund the buyback and refinance existing debt with about $80 million in debt under new senior secured credit facilities, which it plans to enter into when the offering closes. If it goes through, the refinancing will increase the amount of debt on PGT's balance sheet by about $50 million.
The completion of the stock buyback, debt refinancing and offering are all contingent on each other, the company said.
In midday trading, PGT shares added 7 cents to $8.97.