Circuit City Stores Announces Public Offering of CarMax Group Common Stock
Circuit City Stores, Inc. announced July 26 the public offering of 8,850,000 shares of Circuit City Stores, Inc. - CarMax Group Common Stock at $15.50 per share.The shares sold in the offering are shares of CarMax Group stock reserved for the Circuit City Group. The company intends to allocate the net proceeds of the offering to the Circuit City Group to be used for general corporate purposes of the Circuit City business, including the ongoing remodeling of Circuit City stores.The lead manager for the offering is Morgan Stanley & Co. Inc.; co-managers are Banc of America Securities LLC and UBS Warburg LLC. The company has granted the underwriters an option to purchase up to an additional 1,327,500 shares of CarMax Group stock to cover over-allotments, if any.CarMax is a specialty retailer of used cars. Circuit City is a g national retailer of brand-name consumer electronics, personal computers, and entertainment software. With headquarters in Richmond, VA, Circuit City Stores Inc. operates 40 CarMax retail units in 37 locations, including 33 used-car superstores. CarMax operates 21 new-car franchises, most of which are integrated or co-located with its used-car superstores. The company operates 596 Circuit City Superstores in 161 markets and 32 Circuit City Express mall stores.