Dave & Buster’s prices secondary offering at $267.8MDave & Buster’s prices secondary offering at $267.8M

Dave & Buster’s Entertainment Inc. announced a secondary offering this week for 8.5 million shares, to raise $267.8 million.

The Dallas-based dining-entertainment company, which raised about $94.1 million in its initial public offering in October 2014, priced shares of the secondary offering at $31.50, and said it expected the offering to close on or before June 2.

Additionally, stockholders granted underwriters the option to purchase up to nearly 1.3 million additional shares of common stock at the offering price.

In October, Dave & Buster’s priced its initial 5.9 million shares of common stock at $16 per share. As of midday Thursday, the stock, which trades on the Nasdaq market, was about $31.75 a share.

Earlier this week, 76-unit Dave & Buster’s issued preliminary results for its first quarter ended May 3, and indicated that same-store sales remained strong into the new fiscal year. The company will release full results on June 8.

The company said first-quarter same-store sales were expected to rise 9.8 percent to 9.9 percent. For the fourth quarter ended Feb. 1, Dave & Buster’s reported a same-store sales increase of 10.5 percent. Steve King, Dave & Buster’s CEO, said in an analyst call that new units were showing strong results.

Dave & Buster's also said in its first-quarter preliminary earnings estimate that it expects revenue to be between $221.7 million and $222.7 million.

On May 18, the company said it had closed on a five-year, $500 million senior credit facility, with about $389 million of proceeds and $45.3 million in cash going to refinancing existing loans.

“Dave & Buster’s continued strong performance and business momentum has positioned us to refinance our outstanding indebtedness at substantially lower interest rates,” King said in a statement at the time. He called it “opportunistic refinancing” that would help the company save more than $9 million in annualized interest expenses.

Jefferies LLC and Piper Jaffray & Co. are acting as lead bookrunners for the follow-on offering, with others including William Blair & Co. LLC, Raymond James & Associates Inc. and Stifel. BMO Capital Markets Corp. is co-manager for the offering.

Founded in 1982, Dave & Buster’s has locations in 30 states and Canada.

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