CDW was initially slated to raise up to around $750 million. The new mid-point of the range signals 23.25 million shares at a range of $17 to $18 per share, versus a prior range of $20 to $23 per share. This comes to almost $407 million at the mid-point. The book-runners are listed as J.P. Morgan, Barclays and Goldman Sachs.
Private equity giants Madison Dearborn Partners and Providence Equity Partners took CDW private in a leveraged buyout for more than $7 billion back in 2007 during the private equity bubble. CDW managed to grow since then and it may be just one of the other large thorns in the side of Best Buy Co. Inc. (NYSE: BBY) while still being able to compete handily against Amazon.com Inc. (NASDAQ: AMZN).
As far as the use of proceeds, several uses were listed. CDW intends to use some $354.8 million to redeem $175.0 million aggregate principal amount of senior secured notes and $156.0 million aggregate principal amount of senior subordinated notes and redemption premia of $14.0 million and $9.8 million. And it will use $13.1 million of cash on hand or borrowings under the ABL facility to pay accrued and unpaid interest.
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