Championship Auto Racing Teams Announces IPO.DETROIT--(BUSINESS WIRE)--March 10, 1998--Championship Auto Racing Teams Inc. (NYSE NYSE See: New York Stock Exchange :OPW OPW Orthogonalized Plane Wave OPW Objective Personal Weapon OPW Ohio Pattern Works OPW Oldest Packet Win (throughput scheme) OPW Organization Plus for Windows OPW Office Profile Wizard ) today announced that its initial public offering of 4,700,000 shares of Common Stock was priced at $16 per share. The company's Common Stock will be listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "OPW". Of the 4,700,000 shares of Common Stock being offered 4,333,334 shares are being offered by the company and an aggregate of 366,666 shares are being offered by certain selling stockholders of the company. After the offering (and assuming no exercise of the over-allotment option), there will be 14,466,666 shares of Common Stock outstanding. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering (before any exercise of the over-allotment option), after deducting underwriting commissions and expenses, are expected to be $63,330,010. The company intends to use $10.0 million of the net proceeds to purchase the Indy Lights The Indy Lights was an open-wheeled racing series that acted as a developmental circuit for CART from 1986 to 2001. Founded in 1986 as the American Racing Series (ARS), the series was renamed Indy Lights in 1991. racing series, the official development series of CART, and $9.5 million to pay certain obligations owed to existing race teams. The balance of the net proceeds will be used for working capital and other general corporate purposes, including funding future acquisitions and developing racing related businesses and properties. Jefferies & Company Inc. and A.G. Edwards & Sons Inc. served as managing underwriters for the offering. Championship Auto Racing Teams Inc. owns, operates and sanctions the premier open-wheel motorsports series in North America, the FedEx Championship Series, formerly known as the PPG PPG Points Per Game (basketball player statistic) PPG Power Play Goals (hockey) PPG Planning Policy Guidance (UK) PPG Programmable Pulse Generator PPG Power Puff Girls CART World Series, and is responsible for organizing, marketing and staging each of the 19 races in the FedEx Championship. With speeds up to 240 miles per hour, and an average margin of victory during the 1997 race season of less than four seconds, CART open-wheel racing is the fastest form of closed-circuit auto racing available to motorsports audiences, providing intense excitement and competition. A copy of the written prospectus can be obtained from Jefferies & Company Inc., Syndicate Department, 650 Fifth Avenue, 4th Floor, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York 10019. These securities are offered only by means of a written prospectus and this announcement is neither an offer to sell nor a solicitation of an offer to buy. CONTACT: Championship Auto Racing Teams, Inc. Ron Richards, 248/362-8800 |
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