Mattress maker Select Comfort Corp. said Monday that it closed a public offering of 3.8 million shares of its common stock, which will likely have net proceeds of about $16.4 million.
The company said it will use the proceeds to get rid of its outstanding debt and boost working capital.
The offering, which was priced at $4.75 per share, excludes $1.6 million that Select Comfort will receive if minority shareholder Sterling SC Investor exercises its contractual pre-emptive rights. Sterling has approximately 9 percent interest in the company.
Shares of Select Comfort fell 21 cents, or 3.4 percent, to $6 in morning trading. Over the last year, the stock has traded in a range of 20 cents to $7.01.