The North Palm Beach, Fla., company said in a Securities and Exchange Commission filing that it expects to offer 12.5 million shares of common stock at a price of $14 to $16 apiece. An additional 7.5 million shares will be offered by company stockholders, and BankRate won't receive any proceeds from the sale of those shares.
Those sellers include a wholly owned subsidiary of the private equity firm Apax Partners. Apax owns a more than 85 percent stake of Bankrate, and would own about 70 percent after the offering, according to the filing. After 10 years as a public company, Bankrate was acquired in August 2009 by Apax for about $571 million.
The other selling stockholders in the offering include Bankrate officers and directors.
At the midpoint of the company's price range estimate for the offering, Bankrate would raise about $165.7 million after expenses for the offering, the company said. That estimate also assumes the underwriters fully exercise their option to purchase as many as 3 million additional shares.
The underwriters include Goldman Sachs, BofA Merrill Lynch, Citigroup, J.P. Morgan, Allen & Co., Credit Suisse, Stephens Inc., RBC Capital Markets and Stifel Nicolaus Weisel.
Bankrate intends to list the shares on the New York Stock Exchange under the symbol "RATE."
The company intends to use proceeds from the offering to redeem debt notes, cover related fees and expenses, and for other corporate purposes. The company does not anticipate paying any cash dividends to holders of its common stock.
Bankrate Inc.'s companies include its flagship website Bankrate.com, as well as Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe CreditCardGuide.com and Bankaholic. All provide personal finance-related information. Bankrate.com aggregates comparisons of interest rates and other details about more than 300 financial products. Those include mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. The site also features written analyses.
Bankrate also provides services to personal finance sites such as Yahoo, AOL, CNBC and Bloomberg, and licenses editorial content to more than 100 newspapers.
Bankrate posted a net loss of $21.5 million last year on revenue of $300.9 million. In this year's first quarter, the company reported a profit of $5.1 million on revenue of $99.1 million.
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