Proceeds to repay $20 million drawdown used to fund Trade Tech buyout
By Susanna Moon
Chicago, Jan. 13 - Virtusa Corp. said underwriters fully exercised their over-allotment option for an additional 345,000 common shares, bringing the total public offering proceeds to $91,252,000.
The company sold 2,645,000 shares at a price of $34.50 per share, which is a 1.43% discount to the company's closing price on Jan. 8. The company priced 2.3 million shares on Jan. 9.
Proceeds will be used to repay the outstanding borrowings of $20 million drawn down under Virtusa's new $25 million revolving credit facility to fund its Jan. 2 acquisition of Trade Tech Consulting Scandinavia AB and its subsidiaries. The remaining proceeds are expected to be used for general corporate purposes, which may include financing of possible strategic acquisitions, working capital and capital expenditures, including facilities expansion.
J.P. Morgan Securities LLC was the bookrunning manager.
Virtusa provides end-to-end information technology services and is based in Westborough, Mass.
| Issuer: | Virtusa Corp.
|
| Issue: | Common shares
|
| Amount: | $91,252,000 (including $11,902,500 greenshoe exercise)
|
| Shares: | 2,645,000
|
| Price: | $34.50
|
| Warrants: | No
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Co-managers: | William Blair & Co., LLC, Needham & Co., LLC and Janney Montgomery Scott LLC
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 13
|
| Stock symbol: | Nasdaq: VRTU
|
| Stock price: | $35.00 at close Jan. 8
|
| Market capitalization: | $905.43 million
|
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