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Grocery Outlet Launches IPO To Aid Loan Repayment

Grocery Outlet IPO

Grocery Outlet Holding Corp. has launched its initial public offering (IPO) of 17,187,500 shares of its common stock pursuant to a registration statement filed with the Securities and Exchange Commission. The initial public offering price is expected to be between $15-$17 per share. Grocery Outlet has applied to have its common stock approved for listing on the Nasdaq Global Select Market under the symbol “GO.”

Emeryville, California-based Grocery Outlet sells name-brand consumables and fresh products through its network of independently-operated stores. The retailer has more than 300 stores in California, Idaho, Nevada, Oregon, Pennsylvania and Washington. 

Grocery Outlet intends to use the net proceeds from the IPO to repay the term loan outstanding under its second lien credit agreement and any remainder to repay a portion of the term loan outstanding under its first lien credit agreement.

The offering is being made through an underwriting group led by BofA Merrill Lynch, Morgan Stanley, Deutsche Bank Securities, Jefferies, Barclays, Goldman Sachs & Co. LLC, Guggenheim Securities, UBS Investment Bank and Cowen, who are acting as joint book-running managers for the offering. Telsey Advisory Group, Drexel Hamilton and Penserra Securities LLC are acting as co-managers. Grocery Outlet expects to grant the underwriters a 30-day option to purchase up to an additional 2,578,125 shares of its common stock at the initial public offering price less the underwriting discount. A registration statement on Form S-1, including a prospectus, which is preliminary and subject to completion, relating to these securities, has been filed with the Securities and Exchange Commission but has not yet become effective.

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