Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) saw shares surge in the after-hours trading after beating earnings and raising guidance. It turns out that higher coffee prices are not yet hurting the company. A short interest of more than 22 million shares likely created a short squeeze as well.
Now this morning came a supplemental filing from the company that will be raising funds for the company and some from selling holders. The offering is for an aggregate of 7,503,883 shares of common stock. The company is selling 7.1 million shares and the holders are offering 403,883 shares of common stock.
The use of proceeds (along with the concurrent private placement to Lavazza) will be to repay outstanding debt under the term loan B portion of the credit facility and for general corporate purposes. As of March 26, 2011, approximately $1.063 billion was outstanding under the company’s $1.45 billion credit facility. That includes its $450 million revolving credit facility, a $200 million alternative currency revolving credit facility, a $250 million term loan A facility and a $550 million term loan B facility. When you see the proceeds used for this and also compared to a prior credit facility, these forms of capital raises are not quite the same as other highly dilutive deals that are announced after good news.
BofA Merrill Lynch is the book-runner; co-managers are William Blair & Co., Canaccord Genuity, Janney Montgomery Scott, RBC Capital Markets, Rabo Securities, and Santander. The sellers are listed as Robert Stiller, Lawrence Blanford, William Davis, and David Moran.
When we signed out last night with the after-hours review we had Green Mountain shares up about 18.8% at $76.12 on over 1.4 million shares. The pre-market trading at 8:50 AM EST has shares up 18.6% at $76.00 on only about 91,000 shares. Anything above $68.03 represents a 52-week high and all-time high.
The full supplemental filing is here.
JON C. OGG
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