Emerald Expositions Files for IPO

Emerald Expositions Events Inc. filed for an initial public offering recently. The San Juan Capistrano, Calif.–headquartered company is seeking to raise from $295 million to $310 million, according to media reports. If the IPO is successful, the company will be listed under the New York Stock Exchange under the ticker EEX. Bank of America, Merrill Lynch, Barclays and the Goldman Sachs Group are leading the sales of the IPO.

Emerald currently produces more than 50 trade shows, including prominent events with an apparel focus such as Surf Expo, Imprinted Sportswear Show, Outdoor Retailer and Swim Collective. In a prospectus filed with the Securities and Exchange Commission, the company stated that its top reasons for filing an IPO include reducing its debt, increasing its capitalization and financial flexibility. The prospectus also noted that the company’s debt is coming due.

Its term-loan facility and revolving-credit facility are scheduled to mature in June 2020 and 2018, respectively. At the end of December 2016, Emerald’s debt included $713.3 million under the term-loan facility and $99.4 million in the revolving-credit facility.

Emerald had $323.7 million in revenue in the year that ended Dec. 31, 2016. During that year, it earned $71 million in its sports division, which includes Surf Expo, ISS and Outdoor Retailer. Revenue grew 14 percent from 2014 to 2016, Emerald’s prospectus said. The document also stated that the company will focus on growth by increasing attendance at existing shows, launching new shows, acquiring trade shows and “managing price growth,” or instituting price increases.