Endeavor Prices IPO Thursday at $ 24 a Share, High of Projected Range – Deadline

Endeavor Group Holdings shares will begin trading Thursday at $ 24 a share, carrying out a long-standing plan to take the company public.

The owner of WME, IMG and the UFC mixed martial arts circuit also plans to take full control of the UFC in a separate transaction from the IPO.

The price is at the high end of the offer, which follows a previous IPO attempt in 2019, which had been snatched at the 11th hour. Unstable market conditions and tensions with the Writers Guild of America over packaging canceled out the effort two years ago, but WME and other agencies have since struck a deal with the WGA. A revised prospectus last week set the range between $ 23 and $ 24 per share.

Updating its plans tonight in a registration statement, Endeavor said it is offering 21.3 million Class A common stock, closer to 3.2 million Class A common stock than the payees. farms have a 30 day purchase option.

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When trading begins Thursday on the New York Stock Exchange, Endeavor shares will trade under the symbol EDR. The offer is expected to close on May 3.

CEO Ari Emanuel and Executive Chairman Patrick Whitesell will own a controlling stake in at least $ 900 million of combined shares if the offer goes as planned. The IPO values ​​Endeavor at around $ 10 billion.

Silver Lake will be the largest stakeholder in Endeavor, which has made a series of aggressive acquisitions in recent years to branch out from its agency roots. While it continues to be a powerhouse for talent, the company also has streaming technology, fashion, production, sports and data analytics assets.

Separate from the IPO, a private placement has been arranged that will bring Endeavor $ 835.7 million to take full control of the UFC. An additional $ 951.5 million is designated as working capital.

Endeavor led a group of private investors in a $ 4 billion acquisition of the UFC in 2016. While the circuit has grown steadily, especially among young fans, and has seen lucrative deals of Pay-per-view and television, the transaction added to Endeavor’s indebtedness.

Last week’s filing brought the company’s debt to $ 5.92 billion on a pro forma basis (as of December 2020, assuming IPO and UFC transactions complete). Cash and cash equivalents were $ 1.96 billion.

Morgan Stanley, Goldman Sachs, JP Morgan and Deutsche Bank are lead bookkeepers. Barclays, Citigroup, Credit Suisse, Evercore ISI, HSBC, Jefferies, Moelis & Company, Piper Sandler & Co., RBC Capital Markets and UBS are associate bookkeepers. CODE Advisors, DBO Partners, LionTree, Academy Securities, R. Seelaus & Co., Samuel A. Ramirez & Company and Siebert Williams Shank are co-managers of the proposed offering.

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