Select Comfort (SCSS) Prices 3.8M Shares at $4.75/Share

Select Comfort Corporation (NASDAQ: SCSS), today announced the pricing of its previously announced underwritten public offering of 3.8 million shares of its common stock at a public-offering price of $4.75 per share. Piper Jaffray is acting as the sole manager for the public offering.

The public offering will result in gross proceeds of $18,050,000 and, after deducting underwriting discounts and commissions, net proceeds of $16,967,000. Additional public offering expenses are expected to be approximately $500,000. If Sterling Partners exercises its preemptive rights to maintain its percentage ownership at approximately 9.0 percent, an additional 341,254 shares of common stock would be issued upon the same terms as the issuance of shares in the public offering. The public offering is subject to customary closing conditions and is expected to close Dec. 11, 2009.

The company plans to use the proceeds of the public offering to improve working capital and pay down debt. Under the terms of the company's amended and restated credit agreement dated Nov. 13, 2009, the aggregate amount available under the credit facility at closing will be $40 million. The proceeds from this public offering are expected to fulfill the company's obligation under the credit agreement to issue additional equity.