DG FastChannel Nets $108 Mil At Public Offering
April 13, 2010 at 2:20 PM (PT)
DG FASTCHANNEL has closed its public offering, announced on April 7, which sold 3,651,250 shares resulting in total net proceeds of approximately $108 million, including the underwriters’ purchase of additional shares of common stock to cover over-allotments.
DG FASTCHANNEL has used approximately $100 million of the proceeds from the sale to retire all indebtedness outstanding under its credit facility, and maintains its undrawn $30 million revolving credit facility. After debt repayments, the remaining $8 million of proceeds increases the Company’s cash balances to approximately $58 million.
The company also announced that it is currently negotiating for a larger revolving credit facility and intends to use it to fund potential acquisitions and for general corporate purposes.