BUZZ-Rush Street Interactive slides on $260 mln secondary offering

Wells Fargo & Company
Rush Street Interactive, Inc. Class A

Wells Fargo & Company

WFC

0.00

Rush Street Interactive, Inc. Class A

RSI

0.00

** Online gaming casino and sports betting firm Rush Street Interactive's RSI.N shares down 9.8% premarket to $26.30 after $260 mln overnight secondary offering

** Chicago, Illinois-based RSI late Tues announced trusts owned by executive chairman Neil Bluhm, CEO Richard Schwartz and COO Mattias Stetz parted with 10 mln shares

** Offering price of $26 is 10.9% discount to stock's record high close of $29.17 on Tues

** RSI said stockholders offloading for personal financial planning and estate planning purposes, and that trusts owned by Bluhm will continue to own >40% of its stock post offering

** In addition, RSI to repurchase ~1.15 mln of offering shares for $30 mln from the underwriters under its existing buyback program

** Wells Fargo and Morgan Stanley joint bookrunners

** RSI has ~232.7 mln shares outstanding

** Through Tues, stock up 50% YTD

** Of 10 analysts covering the stock, 9 rate "strong buy" or "buy", 1 "hold"; median PT $29, according to LSEG data


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