ServiceMaster Global Holdings, Inc., a leading provider of essential residential and commercial services, today announced that it has priced an initial public offering of 35,900,000 shares of common stock at $17 a share. The shares are expected to begin trading on the New York Stock Exchange tomorrow under the ticker symbol SERV.
The company has granted the underwriters a 30-day option to purchase up to an additional 5,385,000 shares of common stock.
The company intends to use the net proceeds of the offering (i) to redeem (a) $210 million of the outstanding principal of the 8% senior notes due 2020 issued by its subsidiary, The ServiceMaster Company, LLC (“SvM”), at a redemption price equal to 108% of the principal amount thereof, plus accrued interest and (b) $262.5 million of the outstanding principal of SvM’s 7% senior notes due 2020 issued at a redemption price equal to 107% of the principal amount thereof, plus accrued interest; (ii) to pay certain shareholders consulting termination fees of $21 million; and (iii) to repay borrowings under SvM’s existing term loan facility with any remaining proceeds.
The offering is being made through an underwriting group led by J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, who are acting as joint book-running managers and as representatives of the underwriters for the offering. Additional book-running managers are BofA Merrill Lynch, Jefferies LLC, Natixis Securities Americas LLC and RBC Capital Markets, LLC. Robert W. Baird & Co. Incorporated, Piper Jaffray & Co. and Samuel A. Ramirez & Company, Inc. are acting as co-managers for the offering.
June 25, 2014