Alliance Data Systems Corp. , a leading provider of transaction services, marketing services and credit services, today announced the pricing of a public offering at $19.65 per share, of 9,000,000 shares of its common stock, 7,000,000 of which are being sold by one of its stockholders, Limited Commerce Corp., an affiliate of Limited Brands, Inc., and the remaining 2,000,000 of which are being sold by Alliance Data Systems. In addition, Alliance Data Systems has granted the underwriters an option to purchase up to 1,350,000 shares from Alliance Data Systems at the offering price.
The net proceeds to Alliance Data, estimated at $36.8 million, together with other available funds will be used to repay in full a subordinated note in the original principal amount of $52 million to an affiliate of Welsh, Carson, Anderson & Stowe, Alliance Data's largest stockholder.
Bear, Stearns & Co. Inc., Credit Suisse First Boston LLC and J.P. Morgan Securities Inc. are joint book-running managers for the offering. In addition, Adams, Harkness & Hill, Inc., CIBC World Markets Corp. and Lehman Brothers Inc. are serving as co-managers. Copies of the final prospectus relating to the offering may be obtained from the Prospectus Departments of the joint book-running managers at the following addresses: Bear, Stearns & Co. Inc., 383 Madison Avenue, New York, NY 10179; Credit Suisse First Boston LLC, Eleven Madison Avenue, New York, NY 10010; and J.P. Morgan Securities Inc., One Chase Manhattan Plaza, New York, NY 10081, telephone 212-552-5121 or email addressing.services@jpmchase.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction.
Alliance Data Systems' Safe Harbor Statement/Forward Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Litigation Reform Act. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project" and similar expressions as they relate to Alliance Data Systems or our management. When we make forward-looking statements, we are basing them on our management's beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions including the risks discussed in our filings with the Securities and Exchange Commission. If one or more of these risks materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this press release reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
Alliance Data Systems Corp.