REV Group Ups IPO Earnings Estimate to $240 Million

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Milwaukee-based specialty vehicle maker Rev Group hopes to raise $231.4 million in its initial public offering and use the money to pay down long-term debt.

The Milwaukee Business News reports that the company, which moved its headquarters to Milwaukee from Orlando last year, plans to offer 12.5 million shares of common stock in the offering and is expecting it to be priced between $19 and $21 per share.

The potential total proceeds from the IPO represent a significant increase over the company’s initial filings, which suggested it would raise $100 million.

The midpoint of that range would give the company $231.4 million in proceeds after expenses and underwriting discounts. A $1 per share change in the price would increase or decrease the proceeds by $11.7 million.

Rev Group plans to use approximately $192.1 million to pay off its outstanding senior secured notes, which have a fixed interest rate of 8.5 percent and mature on Nov. 1, 2019. The company will also use up to $39.3 million to pay on its asset-based loans.

The company has been approved for listing on the New York Stock Exchange under the ticker symbol REVG. The offering will be priced and begin trading sometime next week, although an exact date has not been set.


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