Snap One Holding Corp.’s initial public offering could total as much as $334.5 million, as the company intends to sell 13.85 million shares priced between $18 and $21.
The Charlotte-based company, which manufactures and markets home and office technology equipment, filed additional information about its upcoming IPO Monday morning with the U.S. Securities and Exchange Commission. Formerly known as SnapAV, the company plans to list its stock on the NASDAQ Global Market with the ticker symbol "SNPO." The date of the offering has not yet been set.
The filing says Snap One will receive net proceeds of $248.6 million if the shares sell at the midpoint price of $19.50 each. That would indicate that the net proceeds from the sale would be about $230 million if the offering prices at $18 and $268 million if it prices at $21. The net proceeds are what the company will receive after the cost of the offering and underwriters' discounts.
Snap One will use the proceeds “to repay a portion of the term loan outstanding under our credit agreement totaling $245.7 million, plus accrued interest thereon of approximately $2.9 million, and the remainder, if any, for general corporate purposes.”
That is the total of the initial senior secured term loan under the agreement. Snap One also as an incremental term loan totaling $390 million, plus interest owed, under the same credit agreement.
'Controlled company'
The investment banks underwriting the offering have up to 30 days to exercise an option to sell 2.08 million shares in an over-allotment. Those shares will come from selling stockholders — large current holders and Snap One executives. Snap One will receive no proceeds from the over-allotment sales.
After the offering is completed, Hellman & Friedman will be by far the largest shareholder. There will be almost 75 million shares of stock outstanding after the offering, if there is no over-allotment, and Hellman & Friedman will hold 73.8% of them. If the over-allotment is sold, there will be almost 77 million shares outstanding and Hellman & Friedman will hold 71.9%.
That means that Snap One will be a “controlled company” under NASDAQ rules. That qualifies it for exemptions from certain requirements involving the independence of directors. It is not yet clear that Snap One will take advantage of these exemptions after the IPO.
Tech entrepreneur
SnapAV was founded in 2005 by local tech entrepreneur Jay Faison. It originally focused on home and office audio-visual equipment. But now the company develops and manufactures A/V, security, control, networking and remote management products for professional integrators of home and office technology.
Faison sold the company in 2013 to private equity firm General Atlantic for an undisclosed price. In 2017, current owner Hellman & Friedman bought it from General Atlantic, also for an undisclosed price.
In 2019, SnapAV closed on its $680 million purchase of Utah-based electronics manufacturer Control4 Corp. There have been other smaller acquisitions, including the purchase of California-based Access Networks for $38.1 million. That deal closed in May.
As of March 26, SnapAV, now Snap One, had grown to 1,302 employees, the SEC filing says. The Access Networks purchase added 26 people to that total.
The underwriters are led by Morgan Stanley, J.P. Morgan, Jefferies and UBS Investment Bank, who are acting as lead bookrunning managers; BMO Capital Markets, Raymond James, Truist Securities and William Blair, who are acting as joint bookrunning managers; and Drexel Hamilton, Penserra Securities LLC, R. Seelaus & Co. LLC and Siebert Williams Shank, who are acting as co-managers.
