Sterling Announces Pricing of Initial Public Offering

Rhea-AI Summary

Sterling Check Corp. announced the pricing of its initial public offering (IPO) of 14,285,000 shares at $23.00 each. Of these, 4,760,000 shares are offered by Sterling, while 9,525,000 shares are from existing stockholders. The expected net proceeds to Sterling are approximately $94.4 million, mainly to repay a $100 million term loan. Trading of Sterling’s shares under the ticker symbol 'STER' will commence on the Nasdaq Global Select Market on September 23, 2021, and the offering is set to close on September 27, 2021, pending customary closing conditions.

Positive

• Net proceeds of approximately $94.4 million are aimed at repaying outstanding term loan debt.

Negative

• The offering may lead to shareholder dilution due to the sale of shares by existing stockholders.

NEW YORK, Sept. 22, 2021 (GLOBE NEWSWIRE) -- Sterling Check Corp. (“Sterling”) today announced the pricing of its initial public offering of an aggregate of 14,285,000 shares of common stock at a price to the public of $23.00 per share. Of the offered shares, 4,760,000 are being offered by Sterling and 9,525,000 are being offered by certain of Sterling’s existing stockholders. The net proceeds from the offering to Sterling, after deducting underwriting discounts and commissions and estimated offering expenses payable by Sterling, are expected to be approximately $94.4 million. Sterling intends to use the net proceeds, together with cash on hand, to repay approximately $100.0 million outstanding under its term loan. Sterling will not receive any proceeds from the sale of the shares by the selling stockholders. In addition, the underwriters have been granted a 30-day option to purchase up to an additional 2,142,750 shares of common stock from the selling stockholders at the initial public offering price, less underwriting discounts and commissions.

Shares of Sterling’s common stock are expected to begin trading on the Nasdaq Global Select Market on September 23, 2021 under the symbol “STER” and the offering is expected to close on September 27, 2021, subject to the satisfaction of customary closing conditions.

Goldman Sachs & Co. LLC, J.P. Morgan and Morgan Stanley are acting as lead book-running managers for the offering. Baird, William Blair, KeyBanc Capital Markets, Wolfe | Nomura Strategic Alliance and Stifel are acting as book-running managers for the offering. ING and R. Seelaus & Co., LLC are acting as co-managers for the offering.

The offering is being made only by means of a prospectus. When available, copies of the final prospectus relating to the offering may be obtained by contacting Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014. 

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on September 22, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Sterling

Sterling — a leading provider of background and identity services — offers background and identity verification to help over 40,000 clients create people-first cultures built on a foundation of trust and safety. Sterling’s tech-enabled services help organizations across all industries establish great environments for their workers, partners, and customers. With operations around the world, Sterling conducts more than 75 million background checks annually.

Contacts

Jamie Serino
Sterling
Jamie.Serino@sterlingcheck.com

or

Noelle Amos
Edelman
Noelle.Amos@edelman.com

Investor Contact
IR@sterlingcheck.com

FAQ

What is the share price for Sterling's IPO?

Sterling's shares are priced at $23.00 each for the IPO.

When will STER begin trading?

Shares of Sterling are expected to begin trading on September 23, 2021.

What will Sterling do with the IPO proceeds?

Sterling plans to use the proceeds to repay approximately $100 million of its term loan.

How many shares are included in Sterling's IPO?

The IPO includes a total of 14,285,000 shares.

Who are the underwriters for Sterling's IPO?

Goldman Sachs, J.P. Morgan, and Morgan Stanley are the lead underwriters for the offering.