Gander Mountain Company announces completion of private placement
17 Aug '05
3 min read
Saint Paul, Minnesota based outdoor company Gander Mountain Company announced that it has completed a private placement of $20.0 million of floating rate convertible subordinated notes with David C. Pratt; a Private Investor Pratt also owns 1.4 million shares of Gander Mountain Company common stock.
The convertible subordinated notes have an initial conversion price of $16.00 per share and bear interest at 7.0 percent for the first two years, after which time the rate will float with the federal funds rate to a maximum rate of 8.5 percent. The notes mature on August 16, 2010, and may be prepaid without penalty at any time after August 16, 2007.
"This financing will help drive aggressive growth as they seek to take advantage of consolidation in the fragmented outdoor lifestyle market," said Mark Baker, President and CEO. "By adding new stores, they expand their geographic diversity and realize increased benefits of scale."
The company also announced that the company's board of directors has increased the number of seats on the board from seven to eight and elected Pratt to fill the newly created position until the next shareholder meeting. Pratt is the former Chairman, President and CEO of United Industries.
"I have known David professionally for a number of years and have great respect for his keen business skills," said Mark Baker, President and CEO. "David's expertise in driving profitable corporate growth is demonstrated by his success with United Industries, which he founded. They are very pleased that he has agreed to join our board and expressed his confidence in Gander Mountain by investing even further in our company."
marketing@alchempro.com
