Youbet.com's Stock Offering Aimed at Paying Off Debt
Updated: Wednesday, December 20, 2006 11:30 AM
(Edited press release)
Posted: Wednesday, December 20, 2006 10:11 AM
Youbet.com has announced a stock offering of 6.2 million shares in an effort to pay off debt assumed when the company acquired United Tote earlier this year.
Net proceeds of the offering should raise about $18.5 million, the company said, and will be used to fund Youbet's payment obligations on $10.2 million in promissory notes, as well as for other corporate purposes. Shares will be offered at $3.25 each.
United Tote was acquired by Youbet in February for an announced purchase price of $31.9 million, plus the assumption of approximately $14.7 million in United Tote's secured debt.
Youbet is a provider of technology and pari-mutuel horse racing content for consumers through Internet and telephone platforms, and is a supplier of totalizator systems, terminals and other pari-mutuel wagering services and systems to the pari-mutuel industry through its United Tote subsidiary.
Youbet's International Racing Group subsidiary is the only pari-mutuel rebate provider to be licensed by a U.S. racing regulatory jurisdiction.
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