ShopNBC Parent Registers Shares

Author:
Publish date:
Updated on

ValueVision Media, parent of home shopping channel ShopNBC, is planning to offer shares of its common stock worth about $75 million.

No price has yet been set for the shares, which the company said it may issue from time to time, according to a prospectus filed with the Securities and Exchange Commission on Feb. 23. The company plans to use any proceeds from the offering for general corporate purposes, including repayment of debt, repurchase of preferred stock, acquisitions or investments.

This would be the second time in three months that ValueVision has tapped the public markets. On Dec. 22 it completed a public offering of 4.9 million shares that netted it $17.3 million.

Shop NBC has weathered some hard times - it reported a loss of $19 million during the first nine months of fi scal 2010, and stated in its prospectus that its earnings were insufficient to cover fixed charges and preferred stock dividends from fiscal 2006 to fiscal 2010. In November, it agreed to an extension of the licensing agreement with NBC Universal that allows it to use the NBC name through May 2012. As part of that deal, ValueVision will issue stock valued at $4 million to NBCU on May 15.

Related