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CORPUS CHRISTI, Texas -- Underwriters for Susser Holdings Corp., operator of Circle K convenience stores, have exercised the over-allotment option in full for the company's initial public offering (IPO), purchasing an additional 975,000 shares of common stock at the starting price of $16.50. In addition, Susser has closed its IPO of 7,475,000 shares, including those purchased through the over-allotment.
The shares, sold by Susser Holdings, and all net proceeds will be used to redeem part of its outstanding senior notes, repay outstanding revolving debt and for other general corporate purposes, including growth capital, the company stated in a release.
The offering was made through an underwriting syndicate led by Merrill Lynch & Co. and J.P. Morgan Securities Inc., Jefferies & Company, Inc. and the Morgan Keegan & Company, Inc.
The Corpus Christi, Texas-based company operates 320 convenience stores in Texas and Oklahoma. In addition to selling convenience items like food, drinks, snacks and gas, 137 of the stores include an in-store restaurant called Laredo Taco Co. Susser also serves as a wholesale distributor of motor fuel to its own stores and other customers and is in the process of rebranding all of its convenience stores to the proprietary Stripes brand.