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Subsequent Events
9 Months Ended
Sep. 29, 2013
Subsequent Events [Abstract]  
Subsequent Events

(8) Subsequent Events

Initial Public Offering

On October 9, 2013, the Company completed an initial public offering of 8,625,000 shares of common stock at a price of $14.00 per share, which included 1,125,000 shares of common stock issued upon the exercise in full of the underwriters’ option to purchase additional shares. The Company sold 8,474,869 shares of common stock and certain stockholders sold 150,131 shares of common stock. The Company received net proceeds from the offering of approximately $108.8 million, after deducting the underwriting discount and other estimated offering expenses. The Company did not receive any proceeds from the shares sold by the selling stockholders. Because the initial public offering was a qualified IPO, as defined, all outstanding preferred stock automatically converted into common stock upon the closing of the offering. All dividends accrued on the shares of preferred stock were forfeited at the time of such conversion. Additionally, all outstanding options to purchase non-voting common stock of the Company automatically converted into options to purchase common stock upon the closing of the initial public offering.

Dividend Payment in Connection with Initial Public Offering

The Company used the net proceeds received from the sale of its shares in the initial public offering to pay a previously declared cash dividend of approximately $49.9 million on shares outstanding on October 8, 2013.

Debt Repayment in Connection with Initial Public Offering

On October 24, 2013, the Company used $14.0 million of the net proceeds from the sale of its shares in the initial public offering to repay the amounts outstanding under the senior credit facility.

Option Grants in Connection with Initial Public Offering

Under the 2013 Long-Term Incentive Plan, the Company granted options to purchase 395,000 shares of the Company’s common stock, effective as of the closing of the Company’s initial public offering, to certain senior leaders. Such options have an exercise price equal to the initial public offering price of $14.00 per share and have a four year vesting period. The fair value of the options was determined using the Black-Scholes-Merton option pricing model. The Company used the following assumptions for purposes of valuing these option grants: common stock fair value of $14.00 per share; expected life of options—seven years; volatility—48.3%; risk-free interest rate—2.1%; and dividend yield—0.0%. The Company used the simplified method for determining the expected life of the options. The Company was unable to calculate specific stock price volatility as a private company, and as such, the Company used a blended volatility rate for comparable publicly traded companies.