Select Comfort plans to sell more shares

AP News
Posted: Dec 07, 2009 5:42 PM

Select Comfort Corp. said Monday it plans to sell more stock and use the proceeds to boost working capital and pay down debt.

The sleep mattress company didn't say how many shares it planned to sell or offer other details.

Select Comfort said the offering would meet a requirement of an amended credit agreement from last month. The company said it would file a prospectus supplement with the Securities and Exchange Commission.

Piper Jaffray is the sole manager for the underwritten public offering.

Select Comfort, based in Minneapolis, sells its products through about 400 company-owned stores and other retailers.

Shares of Select Comfort fell 5 cents to $5.01 in regular trading Monday, then dropped 26 cents, or 5.2 percent, to $4.75 in the first few minutes of extended trading after the offering was announced.