Hollywood talent agency Endeavor LLC plans to offer 19,354,839 shares of its class A common stock for its proposed IPO, with a price range between $30 per share and $32 per share.
At the midpoint of that range, Endeavor projected it would raise about $546.8 million in net proceeds. The company's net proceeds from this offering will be about $632.3 million if the underwriters exercise their option to purchase additional shares in full.
After the completion of the offering, Endeavor will manage and operate the business and control the strategic decisions of Endeavor Operating Co. through Endeavor Manager.
Endeavor intends to use about $546.8 million of net proceeds to repay $500 million of the outstanding term loan borrowings under its 2014 credit facilities. Endeavor will use about $46.8 million for working capital and general corporate purposes.
The company plans to list its class A common stock on the New York Stock Exchange under the symbol EDR. Following the offering, Endeavor will have four classes of authorized common stock: class A, class B, class X and class Y.
The class A common stock and class X common stock will have one vote per share. The class Y common stock will have 20 votes per share. The class B common stock will be nonvoting.
Affiliates of private equity firm Silver Lake Partners, together with Endeavor CEO Ariel Emanuel and Executive Chairman Patrick Whitesell and their affiliates, will hold a majority of the issued and outstanding class Y and class X common stock.
For the six months ended June 30, the company recorded $2.05 billion in revenue, up from $1.50 billion in the comparable period in 2018.
The underwriters for the proposed offering are: Goldman Sachs & Co. LLC, KKR Capital Markets LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, UBS Securities LLC, Evercore Group LLC, Jefferies LLC, HSBC Securities (USA) Inc., BTIG LLC, Code Advisors LLC, DBO Partners LLC, LionTree Advisors LLC, Moelis & Co. LLC, Sandler O'Neill & Partners LP, Academy Securities Inc., Samuel A. Ramirez & Co. Inc., Siebert Cisneros Shank & Co. LLC and The Williams Capital Group LP.
