Savers Value Village Closes Initial Public Offering

Paul, Weiss advised for-profit thrift store franchise and Ares Management Corporation portfolio company Savers Value Village, Inc. in its initial public offering of 25,635,415 shares of common stock at $18 per share for a total value of $461.4 million. The IPO was significantly oversubscribed, was upsized by 20% and priced above the estimated price range. In the IPO, 18,750,000 shares were sold by Savers and 6,885,415 shares were sold by funds managed by Ares Management’s private equity group as selling stockholders; 3,343,749 shares were sold under the option granted to the underwriters.

The IPO generated proceeds of over $300 million for the company, which, together with cash on the balance sheet, were used for repayment of indebtedness. It also generated proceeds of $124 million for Ares. J.P. Morgan Securities LLC, Jefferies LLC, Goldman Sachs & Co. LLC and UBS Securities LLC acted as lead book runners and as representatives of the underwriters for the offering.

The Paul, Weiss team was led by corporate partners Christodoulos Kaoutzanis and John Kennedy, and included corporate partners Kenneth Schneider and Michael Vogel, and counsel David Curtiss, Jason Tyler and Frances Mi; tax partner Scott Sontag; and executive compensation partners Rebecca Coccaro and Jean McLoughlin, and counsel Cynthia Akard.