Freedom Group Inc proposed on Monday to raise $225 million in debt and equity to help purchase out some of private equity firm Cerberus Capital Management LP's investors, in a deal that values the controversial gun maker at around $1.2 billion. An undisclosed financial institution has offered Freedom Group a seven-year $200 million loan as well a $25 million equity investment, according to people briefed on a conference call with financiers held on Monday.Cerberus is also exploring other ways to raise cash in order to buy out fund investors no longer wishing to own Freedom Group, maker of the Bushmaster rifle used in the Newtown, Connecticut school shooting rampage, the people said.The sources asked not to be identified because the conference call was private. Cerberus declined to comment.The move comes a year after the New York-based private equity firm said it would sell Freedom Group, a pledge that was made four days after 26 people, most of them children, were killed at the Sandy Hook Elementary School in Newtown.
The Children's Place Retail Stores, Inc. operates as a specialty retailer of apparel and accessories for children. Shares of PLCE fell by 0.43% or $-0.23/share to $52.89. In the past year, the shares have traded as low as $42.21 and as high as $58.89. On average, 421356 shares of PLCE exchange hands on a given day and today's volume is recorded at 492764.
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