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Primo Water Announces Underwriters' Exercise of Over-Allotment Option and Completion of Public Offering of 6,900,000 Shares of Common Stock

/ Source: GlobeNewswire

WINSTON-SALEM, N.C., June 22, 2011 (GLOBE NEWSWIRE) -- Primo Water Corporation (Nasdaq:PRMW) announced the closing today of an underwritten public offering of 6,900,000 shares of common stock, consisting of 3,751,313 shares sold by Primo Water and 3,148,687 shares sold by certain selling stockholders (including Culligan International Company), at a price to the public of $11.26 per share. The underwriters of the public offering were granted and exercised in full their over-allotment option to purchase 900,000 shares of common stock from the Company and Culligan International Company. The net proceeds to Primo Water from the offering were approximately $39.6 million, after deducting underwriting discounts and commissions and estimated offering expenses. Primo Water did not receive any proceeds from the sale of the shares by the selling stockholders. 

Primo Water intends to use the net proceeds received from the offering to repay all outstanding borrowings under its revolving credit facility and for working capital and general corporate purposes, including establishing new store locations for its water bottle exchange and refill vending services.

Stifel Nicolaus Weisel acted as sole book-running manager for the offering. BB&T Capital Markets, Janney Montgomery Scott and Signal Hill acted as co-managers.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on June 16, 2011. The offering of these securities is being made only by means of a prospectus, copies of which may be obtained from Stifel, Nicolaus & Company, Incorporated, One Montgomery Street, Suite 3700, San Francisco, California 94104, or by calling 415-364-2720.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Primo Water Corporation

Primo Water Corporation is a rapidly growing provider of multi-gallon purified bottled water, self-serve filtered drinking water and water dispensers sold through major retailers throughout the United States and Canada. Primo Water's products provide an environmentally friendly, economical, convenient and healthy solution for consuming purified water.

Forward-Looking Statements

This press release contains forward-looking statements that are based on the beliefs and assumptions of Primo Water's management and on information currently available to its management. Forward-looking statements include information concerning Primo Water's anticipated use of the net proceeds received by it from the offering. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipates," "believes," "could," "seeks," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," "would" or similar expressions and the negatives of those terms.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Primo Water's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks are discussed in greater detail in the "Risk Factors" section of the registration statement relating to the public offering described herein and in other documents filed by Primo Water with the Securities and Exchange Commission. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent the beliefs and assumptions of Primo Water's management only as of the date hereof.

Except as required by law, Primo Water assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

CONTACT: Primo Water Corporation Mark Castaneda, Chief Financial Officer (336) 331-4000 ICR Inc. John Mills Katie Turner (646) 277-1228