Shares of Repay Holdings (NASDAQ:RPAY) have popped today, up by 9% as of noon EDT, after the company reported pricing for a secondary offering. The fintech specialist had announced the public offering earlier this week.
The at-the-market offering priced at $20, just slightly below yesterday's closing figure of $20.62. Repay sold 8 million shares through the deal and underwriters have a 30-day option to purchase an additional 1.2 million shares. Gross proceeds should be roughly $160 million before factoring in underwriting commissions, discounts, and other related fees. If the underwriters exercise their options in full, Repay could raise another $24 million in gross proceeds.
The payment processing tech company says it plans to use the net proceeds from issuing 4 million shares for general corporate purposes. Proceeds from the remaining 4 million shares being issued will be used to "acquire an equivalent number of outstanding units representing limited liability company interests of Hawk Parent Holdings LLC owned by CC Payment Holdings, L.L.C., an entity controlled by Corsair Capital LLC and its affiliates, for cash."
Repay has a complicated corporate structure known as an umbrella partnership-C corporation. Repay Holdings Corporation was incorporated and created last summer following a business combination with Thunder Bridge Acquisition. The entity was previously known as Repay Holdings LLC, which was a wholly owned subsidiary of Hawk Parent Holdings LLC.