Chronicle Journal: Finance

Compass Diversified Trust Prices Follow-On Public Offering

WESTPORT, Conn., May 3 /PRNewswire-FirstCall/ -- Compass Diversified Trust (Nasdas: CODI) (the "Trust") today announced the pricing of a follow-on public offering of 8,000,000 shares of the Trust at an offering price of $16.00 per share. The purpose of the Trust is to hold 100% of the trust interests of Compass Group Diversified Holdings LLC (the "Company"). Each share of the trust represents one undivided beneficial interest in the trust property. Compass Group Investments, Inc., through a wholly owned subsidiary, has agreed to purchase 1,875,000 shares in a separate private placement transaction at a per share price equal to the follow-on public offering price for a total of $30 million. This transaction is expected to close in conjunction with the closing of the public offering.

The Company and the Trust were formed to acquire and manage a group of middle market businesses that are headquartered in the United States. The Company intends to use the net proceeds from the offering to repay borrowings under its revolving credit facility and any remaining amounts for general corporate purposes. The Company currently owns six businesses consisting of a human resources outsourcing firm, an electronic components manufacturer, a global chemical hardcoatings manufacturer, a designer and manufacturer of industrial drying and cooling equipment and a distributor of customized promotional products.

Citigroup Global Markets Inc. acted as sole bookrunning manager of the offering. Ferris Baker Watts, Incorporated acted as co-lead manager of the offering, and A.G. Edwards; BB&T Capital Markets, a division of Scott & Stringfellow, Inc.; Morgan Keegan & Company, Inc.; and SMH CAPITAL Inc. acted as co-managers of the offering. The underwriters have been granted an option to purchase an additional 1,200,000 shares to cover over-allotments, if any.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. The offering may be made only by means of a prospectus, copies of which may be obtained from Citigroup, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220 (Tel: 718-765-6732).

    Compass Diversified Trust
    Jim Bottiglieri
    Chief Financial Officer
    203.221.1703
    jim@compassequity.com

    Investor Relations Contact:
    KCSA Worldwide
    Jeffrey Goldberger / Garth Russell
    212.896.1249 / 212.896.1250
    jgoldberger@kcsa.com / grussell@kcsa.com

Source: Compass Diversified Trust

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