Milwaukee-based specialty vehicle maker Rev Group Inc. hopes to raise $231.4 million in its initial public offering and use the money to pay down long-term debt.
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 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 potential total proceeds from the IPO represent a significant increase over…