G-III Apparel Group, Ltd. announced on Monday that it is offering to sell 1.5 million shares of its common stock in an underwritten public offering. The underwriters will have a 30-day option to purchase up to an additional 225,000 shares of common stock from the apparel manufacturer and distributor.
Proceeds from the offering are planned for general corporate purposes, which may include acquisitions. G-III’s most recent acquisition, G.H. Bass in late 2013, resulted in first quarter net sales increase of 34 percent to $366.2 million from $272.6 million in Q1 the previous year.
Pending application of the funds, G-III intends to pay down outstanding debt under its credit agreement and invest the balance of the net proceeds in short-term, investment grade securities.
Barclays Capital Inc. and Piper Jaffray & Co. are acting as bookrunning managers for the offering. Barclays Capital Inc. will serve as the sole representative of the underwriters for the offering. KeyBanc Capital Markets Inc., Brean Capital, LLC, Cowen and Company, LLC and Stephens Inc. will serve as co-managers for the offering.