Chewy Announces Secondary Offering Of About 16.67 Mln Shares At $30.00/shr

(RTTNews) - Chewy Inc. (CHWY) announced the pricing of an underwritten offering of about 16.67 million shares of its Class A common stock, par value $0.01 per share, by Buddy Chester Sub LLC, which is an entity affiliated with funds advised by BC Partners Advisors LP, Chewy's largest shareholder, at a price to the public of $30.00 per share.

The Selling Stockholder granted the underwriter a 30-day option to purchase up to an additional 2.50 million shares of Class A common stock.

Chewy said it will not sell any shares of its Class A common stock in the Offering and will not receive any proceeds from the sale of the shares of Class A common stock being offered by the Selling Stockholder.

In addition, as previously announced, concurrent with the closing of the Offering, Chewy has agreed to purchase from the Selling Stockholder $300 million of Chewy's Class A common stock at a price per share equal to the per share purchase price to be paid by the underwriter in the Offering specified above.

Prior to the Offering and Concurrent Repurchase, Chewy had approximately 143 million shares of Class A common stock and 275 million shares of Class B common stock outstanding. If the Offering and the Concurrent Repurchase are completed, Chewy will have approximately 160 million shares of Class A common stock and approximately 248 million shares of Class B common stock outstanding.

The Offering and Concurrent Repurchase are expected to close by September 23, 2024.