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Transcript of d18rn0p25nwr6d.cloudfront.netd18rn0p25nwr6d.cloudfront.net/CIK-0001670592/055ac3e4-5... · 2020. 2....
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Filed Pursuant to Rule 424(b)(7) Registration No. 333-236475
PROSPECTUS SUPPLEMENT (To Prospectus dated February 18, 2020)
15,000,000 Shares
YETI HOLDINGS, INC.Common Stock
Thesellingstockholdersidentifiedinthisprospectussupplementareoffering15,000,000sharesofcommonstockofYETIHoldings,Inc.Wearenotsellinganysharesofourcommonstockunderthisprospectussupplement,andwewillnotreceiveanyoftheproceedsfromthesaleofthesharesbeingsoldbythesellingstockholders.
OurcommonstockislistedontheNewYorkStockExchange(the"NYSE")underthesymbol"YETI."ThelastreportedsalepriceofourcommonstockontheNYSEonFebruary14,2020was$32.84pershare.
Investing in our common stock involves a high degree of risk. See "Risk Factors" beginning on page S-4 of thisprospectus supplement and the risk factors included in the documents incorporated by reference in this prospectussupplement and the accompanying prospectus to read about certain factors you should consider before buying our commonstock.
Theunderwriterhasagreedtopurchasethecommonstockfromthesellingstockholdersatapriceof$31.85pershare,whichwillresultin$477.8millionofproceeds,beforeexpenses,tothesellingstockholders.Theunderwritermayofferthecommonstock,fromtimetotime,forsaleinoneormoretransactionsontheNYSE,intheover-the-countermarket,throughnegotiatedtransactionsorotherwiseatmarketpricesprevailingatthetimeofsale,atpricesrelatedtoprevailingmarketpricesoratnegotiatedprices.See"Underwriting."
Theunderwritermayalsoexerciseitsoptiontopurchaseuptoanadditional2,250,000sharesfromthesellingstockholders,atapriceof$31.85pershare,for30daysafterthedateofthisprospectussupplement.Iftheunderwriterexercisestheoptioninfull,thetotalproceeds,beforeexpenses,tothesellingstockholderswillbe$549.4million.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determinedif this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.
TheunderwriterexpectstodeliverthesharesofcommonstocktopurchasersonoraboutFebruary20,2020.
ThedateofthisprospectussupplementisFebruary18,2020.
BofA Securities
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S-i
PageProspectus Supplement
ABOUTTHISPROSPECTUSSUPPLEMENT
S-iiWHEREYOUCANFINDMOREINFORMATION S-ivINFORMATIONWEINCORPORATEBYREFERENCE S-vFORWARD-LOOKINGSTATEMENTS S-viPROSPECTUSSUPPLEMENTSUMMARY S-1RISKFACTORS S-4USEOFPROCEEDS S-5SELLINGSTOCKHOLDERS S-6UNDERWRITING S-8LEGALMATTERS S-16EXPERTS S-16
PageProspectus
ABOUTTHISPROSPECTUS
iiWHEREYOUCANFINDMOREINFORMATION ivINCORPORATIONBYREFERENCE vFORWARD-LOOKINGSTATEMENTS viYETIHOLDINGS,INC. 1RISKFACTORS 2USEOFPROCEEDS 3DESCRIPTIONOFCAPITALSTOCK 4CERTAINRELATIONSHIPSANDRELATEDPARTYTRANSACTIONSWITHTHESELLINGSTOCKHOLDERS 9SELLINGSTOCKHOLDERS 12PLANOFDISTRIBUTION 15LEGALMATTERS 18EXPERTS 18
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ABOUT THIS PROSPECTUS SUPPLEMENT
Thisdocumentisintwoparts.Thefirstpartisthisprospectussupplement,whichcontainsspecificinformationaboutthesellingstockholdersandthetermsonwhichthesellingstockholdersareofferingandsellingourcommonstock.Thesecondpartistheaccompanyingprospectus,whichcontainsandincorporatesbyreferenceimportantbusinessandfinancialinformationaboutusandotherinformationaboutthisoffering.ThisprospectussupplementandtheaccompanyingprospectusarepartofashelfregistrationstatementonFormS-3thatwefiledwiththeU.S.SecuritiesandExchangeCommission(the"SEC")undertheSecuritiesActof1933,asamended(the"SecuritiesAct")whichwasautomaticallyeffectiveuponfiling.
In making your investment decision, you should rely only on the information contained in or incorporated by reference in this prospectussupplement, the accompanying prospectus and any free writing prospectus filed by us with the SEC. We are responsible for the information contained inthis prospectus supplement and the accompanying prospectus, including the information incorporated by reference herein and therein as describedherein and therein, and any free writing prospectus that we prepare and distribute. Neither we, the selling stockholders, nor the underwriter haveauthorized anyone to provide you with information different from that contained in or incorporated by reference into this prospectus supplement, theaccompanying prospectus or any such free writing prospectus. Neither we, the selling stockholders, nor the underwriter are making an offer to sell, orsoliciting an offer to buy, these securities in any jurisdiction where the offer or sale is not permitted. The information contained or incorporated byreference in this prospectus supplement, the accompanying prospectus or any related free writing prospectus filed by us with the SEC is accurate only asof the date of the applicable document. Our business, financial condition, results of operations and prospects may have changed since that date.
AspermittedbytherulesandregulationsoftheSEC,thisprospectussupplementandtheaccompanyingprospectusdonotcontainalloftheinformationincludedintheregistrationstatement.Forfurtherinformation,wereferyoutotheregistrationstatementonFormS-3,includingitsexhibitsandtheinformationincorporatedbyreferencetherein,ofwhichthisprospectussupplementandtheaccompanyingprospectusformapart.WearesubjecttotheinformationalrequirementsoftheSecuritiesExchangeActof1934,asamended(the"ExchangeAct"),andthereforefilereportsandotherinformationwiththeSEC.Statementscontainedinthisprospectussupplementandtheaccompanyingprospectusabouttheprovisionsorcontentsofanyagreementorotherdocumentareonlysummaries.IfSECrulesrequirethatanyagreementordocumentbefiledasanexhibittotheregistrationstatement,youshouldrefertothatagreementordocumentforitscompletecontents.
Beforeyouinvestinourcommonstock,youshouldreadtheregistrationstatementofwhichthisdocumentformsapartandthisdocument,includingthedocumentsincorporatedbyreferenceinthisprospectussupplementandtheaccompanyingprospectusthataredescribedunderthecaption"WhereYouCanFindMoreInformation"inthisprospectussupplementandtheaccompanyingprospectus,andanyfreewritingprospectsthatweprepareanddistribute.
Ifthedescriptionofthisofferingvariesbetweenthisprospectussupplementandtheaccompanyingprospectus,youshouldrelyontheinformationinthisprospectussupplement.Anystatementmadeinthisprospectussupplementorinadocumentincorporatedordeemedtobeincorporatedbyreferenceinthisprospectussupplementwillbedeemedtobemodifiedorsupersededforpurposesofthisprospectussupplementtotheextentthatastatementcontainedinthisprospectussupplementorinanyothersubsequentlyfileddocumentthatisalsoincorporatedordeemedtobeincorporatedbyreferenceinthisprospectussupplementmodifiesorsupersedesthatstatement.Anystatementsomodifiedorsupersededwillnotbedeemed,exceptassomodifiedorsuperseded,toconstituteapartofthisprospectussupplement.
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Unlessotherwiseexpresslyindicatedorthecontextotherwiserequires,weusetheterms"YETI,"the"Company,""we,""us,""our"orsimilarreferencestorefertoYETIHoldings,Inc.anditssubsidiaries.
NoactionisbeingtakeninanyjurisdictionoutsidetheUnitedStatestopermitapublicofferingofthecommonstockorpossessionordistributionofthisprospectussupplementinthatjurisdiction.PersonswhocomeintopossessionofthisprospectussupplementinjurisdictionsoutsidetheUnitedStatesarerequiredtoinformthemselvesaboutandtoobserveanyrestrictionsastothisofferingandthedistributionofthisprospectussupplementapplicabletothatjurisdiction.
Weusevarioustrademarks,tradenames,andservicemarksinourbusiness,including,withoutlimitation,YETI®,Tundra®,Hopper®,HopperFlip®,YETITANK®,Rambler®,Colster®,Roadie®,BUILTFORTHEWILD®,LOAD-AND-LOCK®,YETIAuthorized™,YETIPRESENTS™,YETICustomShop™,Panga®,LoadOut®,Camino®,Hondo®,SideKick®,SideKickDry®,Silo®,YETIICE™,EasyBreathe™,FlexGrid™,PermaFrost™,T-Rex™,Haul™,NeverFlat™,StrongArm™,Vortex™,SteadySteel™,HopperBackFlip™,ThickSkin™,DryHaul™,SureStrong™,LipGrip™,NoSweat™,Boomer™,Tocayo™,Lowlands™,TripleGrip™,TripleHaul™,Hauler™,Over-the-Nose™,FatLid™,MagCap™,MagSlider™,DoubleHaul™,HydroLok™,ColdCell™,U-Dock™,Hitchpoint™,WildlyStronger!KeepIceLonger!®,YETICoolers™,LoadOutGoBox™,PackAttic™,Wildproof™,Bearfoot™,GridGuard™,Diehard™,Doublebarrel™,YETIHopper®,YETIRamblerColster®,RamblerOn®,YETIRambler®,YETIBrick®,Flip™,TundraHaul™,HotShot™,ColdcellFlex™,ThermoSnap™,Daytrip®,Crossroads™,ColorInspiredByTrueEvents™,Trailhead™,andYETIVSERIES™.YETIalsousestradedressforitsdistinctiveproductdesigns.Forconvenience,wemaynotincludethe®or™symbolsinthisprospectussupplementandtheaccompanyingprospectus,includingthedocumentsincorporatedbyreference,butsuchomissionisnotmeanttoanddoesnotindicatethatwewouldnotprotectourintellectualpropertyrightstothefullestextentallowedbylaw.Anyothertrademarks,tradenames,orservicemarksreferredtointhisprospectussupplement,theaccompanyingprospectus,includingthedocumentsincorporatedbyreference,thatarenotownedbyusarethepropertyoftheirrespectiveowners.
Thisprospectussupplementandtheaccompanyingprospectus,includingthedocumentsincorporatedbyreferencehereinandtherein,includeestimates,projections,andotherinformationconcerningourindustryandmarketdata,includingdataregardingtheestimatedsizeofthemarket,projectedgrowthrates,andperceptionsandpreferencesofconsumers.Weobtainedthisdatafromindustrysources,third-partystudies,includingmarketanalysesandreports,andinternalcompanysurveys.Industrysourcesgenerallystatethattheinformationcontainedthereinhasbeenobtainedfromsourcesbelievedtobereliable.Althoughweareresponsibleforallofthedisclosurecontainedinthisprospectussupplement,andwebelievetheindustryandmarketdatatobereliableasofthedateofthisprospectussupplement,thisinformationcouldprovetobeinaccurate.
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WHERE YOU CAN FIND MORE INFORMATION
ThisprospectussupplementandtheaccompanyingprospectusarepartofaregistrationstatementonFormS-3thatwehavefiledwiththeSECundertheSecuritiesActanddonotcontainalloftheinformationintheregistrationstatement.ThefullregistrationstatementmaybeobtainedfromtheSECorusasindicatedbelow.Inaddition,wearesubjecttotheinformationalrequirementsoftheExchangeActand,inaccordancewiththeExchangeAct,fileannual,quarterlyandcurrentreports,proxyandinformationstatementsandotherinformationwiththeSEC.OurSECfilingsareavailabletothepublicfreeofchargeontheSEC'swebsiteatwww.sec.gov.
OurfilingswiththeSECarealsoavailablefreeofchargeonourwebsiteatwww.YETI.com.Wemaypostinformationthatisimportanttoinvestorsonourwebsite.Informationcontainedonourwebsiteisnotincorporatedbyreferenceintothisprospectussupplementortheaccompanyingprospectusandyoushouldnotconsiderinformationcontainedonourwebsitetobepartofthisprospectussupplementortheaccompanyingprospectus.YoumayalsorequestacopyofourSECfilings,atnocost,bywritingortelephoningusatthefollowingaddressandtelephonenumber:
YETIHoldings,Inc.Attention:LegalDepartment7601SouthwestParkwayAustin,Texas78735
(512)394-9384
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INFORMATION WE INCORPORATE BY REFERENCE
TheSECallowsusto"incorporatebyreference"intothisprospectussupplementtheinformationwefilewithit,whichmeansthatwecandiscloseimportantinformationtoyoubyreferringyoutothosedocuments.Theinformationincorporatedbyreferenceisconsideredtobepartofthisprospectussupplement.Anystatementcontainedinadocumentincorporatedorconsideredtobeincorporatedbyreferenceinthisprospectussupplementwillbeconsideredtobemodifiedorsupersededforpurposesofthisprospectussupplementtotheextentastatementcontainedinthisprospectussupplementorinanyothersubsequentlyfileddocumentthatisorisdeemedtobeincorporatedbyreferenceinthisprospectussupplementmodifiesorsupersedessuchstatement.Weincorporatebyreferenceinthisprospectussupplementthefollowinginformation(otherthan,ineachcase,documentsorinformationdeemedtohavebeenfurnishedandnotfiledinaccordancewithSECrules):
• ourAnnualReportonForm10-KforthefiscalyearendedDecember28,2019(filedwiththeSEConFebruary18,2020);
• theinformationspecificallyincorporatedbyreferenceintoourAnnualReportonForm10-KfortheyearendedDecember29,2018fromourDefinitiveProxyStatementonSchedule14A(filedwiththeSEConApril4,2019);
• ourCurrentReportonForm8-KfiledwiththeSEConFebruary4,2020;and
• thedescriptionofourcommonstock,parvalue$0.01pershare,containedinExhibit4.5ofourAnnualReportonForm10-KfortheyearendedDecember28,2019(filedwiththeSEConFebruary18,2020),whichupdatedthedescriptionthereofcontainedinourRegistrationStatementonForm8-AinitiallyfiledwiththeSEConOctober23,2018,includinganyamendmentsorreportsfiledforthepurposeofupdatingsuchdescription.
WealsoincorporatebyreferenceeachofthedocumentsthatwefilewiththeSECunderSections13(a),13(c),14or15(d)oftheExchangeActonorafterthedateofthisprospectussupplementandpriortotheterminationoftheofferingunderthisprospectussupplement.Thesedocumentsincludeperiodicreports,suchasAnnualReportsonForm10-K,QuarterlyReportsonForm10-QandCurrentReportsonForm8-K,aswellasproxystatements.Wewillnot,however,incorporatebyreferenceinthisprospectussupplementanydocumentsorportionsthereofthatarenotdeemed"filed"withtheSEC,includinganyinformationfurnishedpursuanttoItem2.02orItem7.01ofourCurrentReportsonForm8-Kafterthedateofthisprospectussupplementunless,andexcepttotheextent,specifiedinsuchCurrentReports.
Wewillprovidetoeachperson,includinganybeneficialowner,towhomaprospectus(oranoticeofregistrationinlieuthereof)isdeliveredacopyofanyofthesefilings(otherthananexhibittothesefilings,unlesstheexhibitisspecificallyincorporatedbyreferenceasanexhibittothisprospectussupplement)atnocost,uponarequesttousbywritingortelephoningusattheaddressandtelephonenumbersetforthaboveunder"WhereYouCanFindMoreInformation."
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FORWARD-LOOKING STATEMENTS
Statementsinthisprospectussupplement,includingthedocumentsthatareincorporatedbyreference,thatarenothistoricalfactsare"forward-lookingstatements"withinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheExchangeAct.Theseforward-lookingstatementsarebasedonourcurrentintent,beliefandexpectations.Weclaimtheprotectionofthesafeharborforforward-lookingstatementscontainedinthePrivateSecuritiesLitigationReformActof1995forallforward-lookingstatements.Thesestatementsareoften,butnotalways,madethroughtheuseofwordsorphrasessuchas"anticipate,""believes,""can,""could,""may,""predicts,""potential,""should,""will,""estimate,""plans,""projects,""continuing,""ongoing,""expects,""intends"andotherwordsandtermsofsimilarmeaninginconnectionwithanydiscussionofthetimingornatureoffutureoperatingorfinancialperformanceorothereventsortrends.Forexample,allstatementswemakerelatingtoourplansandobjectivesforfutureoperations,growthorinitiativesandstrategiesareforward-lookingstatements.
Theseforward-lookingstatementsarebasedoncurrentexpectations,estimates,forecastsandprojectionsaboutourbusinessandtheindustryinwhichweoperateandourmanagement'sbeliefsandassumptions.Wederivemanyofourforward-lookingstatementsfromourownoperatingbudgetsandforecasts,whicharebaseduponmanydetailedassumptions.Whilewebelievethatourassumptionsarereasonable,wecautionpredictingtheimpactofknownfactorsisverydifficult,andwecannotanticipateallfactorsthatcouldaffectouractualresults.Allofourforward-lookingstatementsaresubjecttorisksanduncertaintiesthatmaycauseouractualresultstodiffermateriallyfromourexpectations.Thesestatementsareonlypredictionsandinvolveestimates,knownandunknownrisks,assumptionsanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedinsuchstatements,includingasaresultofthefollowingfactors,amongothers:
• ourabilitytomaintainandstrengthenourbrandandgenerateandmaintainongoingdemandforourproducts;
• ourabilitytosuccessfullydesign,developandmarketnewproducts;
• ourabilitytoeffectivelymanageourgrowth;
• ourabilitytoexpandintoadditionalconsumermarkets,andoursuccessindoingso;
• thesuccessofourinternationalexpansionplans;
• ourabilitytocompeteeffectivelyintheoutdoorandrecreationmarketandprotectourbrand;
• thelevelofcustomerspendingforourproducts,whichissensitivetogeneraleconomicconditionsandotherfactors;
• problemswith,orlossof,ourthird-partycontractmanufacturersandsuppliers,oraninabilitytoobtainrawmaterials;
• fluctuationsinthecostandavailabilityofrawmaterials,equipment,labor,andtransportationandsubsequentmanufacturingdelaysorincreasedcosts;
• theimplementationofannounced,ortheenactmentofnew,tariffsbytheU.S.governmentorbycountriestowhichweexportourproductsorrawmaterials;
• ourabilitytoaccuratelyforecastdemandforourproductsandourresultsofoperations;
• ourrelationshipswithournational,regional,andindependentretailers,whoaccountforasignificantportionofoursales;
• theimpactofnaturaldisastersandfailuresofourinformationtechnologyonouroperationsandtheoperationsofourmanufacturingpartners;
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• ourabilitytoattractandretainskilledpersonnelandseniormanagement,andtomaintainthecontinuedeffortsofourmanagementandkeyemployees;
• theimpactofourindebtednessonourabilitytoinvestintheongoingneedsofourbusiness;and
• theimpactofourlossof"controlledcompany"exceptionsunderNYSElistingstandards,subjecttoapplicablephase-inperiods,andourinabilitytorelyonreduceddisclosurerequirementsasaresultofnolongerqualifyingasan"emerginggrowthcompany"undertheJumpstartOurBusinessStartupsActof2012.
Theaboveisnotacompletelistoffactorsoreventsthatcouldcauseactualresultstodifferfromourexpectations,andwecannotpredictallofthem.Allwrittenandoralforward-lookingstatementsattributabletous,orpersonsactingonourbehalf,areexpresslyqualifiedintheirentiretybythecautionarystatementsdisclosedunder"Item1A.RiskFactors,"inourAnnualReportonForm10-KfortheyearendedDecember28,2019,assuchriskfactorsmaybeamended,supplementedorsupersededfromtimetotimebyotherreportswefilewiththeSEC,includingsubsequentAnnualReportsonForm10-KandQuarterlyReportsonForm10-Q.
Potentialinvestorsandotherreadersareurgedtoconsiderthesefactorscarefullyinevaluatingtheforward-lookingstatementsandarecautionednottoplaceunduerelianceonanyforward-lookingstatementswemake.Theseforward-lookingstatementsspeakonlyasofthedateonwhichtheyaremadeandarenotguaranteesoffutureperformanceordevelopmentsandinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatareinmanycasesbeyondourcontrol.Exceptasrequiredbylaw,weundertakenoobligationtoupdateorreviseanyforward-lookingstatementspublicly,whetherasaresultofnewinformation,futuredevelopmentsorotherwise.
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PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights the information contained elsewhere in this prospectus supplement, the accompanying prospectus and the documentsincorporated by reference herein and therein. Because this is only a summary, it does not contain all of the information that may be important to you. Beforeinvesting in our common stock you should read this entire prospectus supplement, the accompanying prospectus and any related free writing prospectus,together with all documents incorporated by reference herein and therein, carefully, including the "Risk Factors" section of this prospectus supplement andin our Annual Report on Form 10-K for the year ended December 28, 2019 and our consolidated financial statements and related notes incorporated byreference in this prospectus supplement.
Overview
Weareagrowingdesigner,marketer,retailer,anddistributorofavarietyofinnovative,branded,premiumproductstoawide-rangingcustomerbase.OurmissionistoensurethateachYETIproductdeliversexceptionalperformanceanddurabilityinanyenvironment,whetherintheremotewilderness,atthebeach,oranywhereelselifetakesourcustomers.Byconsistentlydeliveringhigh-performingproducts,wehavebuiltafollowingofengagedbrandloyaliststhroughouttheUnitedStates,Canada,Australia,Japan,andelsewhere,rangingfromseriousoutdoorenthusiaststoindividualswhosimplyvalueproductsofuncompromisingqualityanddesign.Ourrelationshipwithcustomerscontinuestothriveanddeepenasaresultofourinnovativenewproductintroductions,expansionandenhancementofexistingproductfamilies,andmultifacetedbrandingactivities.Foradditionalinformationaboutourbusiness,operationsandfinancialresults,seethedocumentslistedunder"IncorporationbyReference."
Corporate Information
Ourprincipalexecutiveandadministrativeofficesarelocatedat7601SouthwestParkway,Austin,Texas78735.Ourtelephonenumberis(512)394-9384andourwebsiteiswww.YETI.com.Wemaypostinformationthatisimportanttoinvestorsonourwebsite.Informationincludedorreferredtoon,orotherwiseaccessiblethrough,ourwebsiteisnotintendedtoformapartoforbeincorporatedbyreferenceintothisprospectussupplement.
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The Offering
Inthisprospectussupplement,unlessotherwiseindicated,thenumberofsharesofourcommonstockoutstandingafterthisoffering(andtheotherinformationbasedthereon)isbasedon86,786,443sharesofourcommonstockoutstandingasofFebruary7,2020.Unlesswespecificallystateotherwise,theinformationinthisprospectussupplementexcludes:
• 397,023sharesofourcommonstockissuableupontheexerciseofoutstandingbutunexercisedoptions,allofwhicharevested,topurchasesharesofourcommonstockundertheYETIHoldings,Inc.2012EquityandPerformanceIncentivePlan,asamendedandrestatedJune20,2018(the"2012Plan")withaweightedaverageexercisepriceof$4.47pershare;
• 1,213,884sharesofourcommonstockissuableupontheexerciseofoutstandingbutunexercisedoptions,175,203ofwhicharevested,topurchasesharesofourcommonstockundertheYETIHoldings,Inc.2018EquityandIncentiveCompensationPlan(the"2018Plan"),withaweightedaverageexercisepriceof$20.43pershare;
• 280,706sharesofourcommonstockissuableuponthesettlementofemployeerestrictedstockunitsoutstandingunderthe2018Plan,withagrantdatefairvalueof$23.82pershare;
• 23,402sharesofourcommonstockissuableuponthesettlementofoutstandingnon-employeedeferredstockunits,9,285ofwhichareunvested,andnoneofwhichhavebeenreleased,underthe2018Plan,withafairvalueof$26.51pershare;10,377sharesofourcommonstockissuable
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Common stock offeredby the sellingstockholders
15,000,000shares(17,250,000sharesiftheunderwriterexercisesitsoptiontopurchaseadditionalsharesinfull).
Underwriter's option topurchase additionalshares from the sellingstockholders
Theunderwriterhasa30-dayoptiontopurchaseupto2,250,000additionalsharesofourcommonstockfromthesellingstockholdersat$31.85pershare.
Common stock to beoutstanding after thisoffering
86,786,443shares.
Use of proceeds Wewillnotreceiveanyproceedsfromthesaleofsharesbythesellingstockholders.Wewillbearthecostsassociatedwiththisregistrationinaccordancewiththeregistrationrightsagreementbetweenusandthesellingstockholders.However,thesellingstockholderswillbearanybrokeragecommissions,transfertaxesorunderwritingcommissionsanddiscountsattributabletoitssaleofsharesofourcommonstock.
Risk factors Investinginourcommonstockinvolvesahighdegreeofrisk.Youshouldcarefullyreadtheinformationsetforthunder"RiskFactors"beginningonpageS-4ofthisprospectussupplement,togetherwithalloftheotherinformationsetforthinthisprospectussupplement,theaccompanyingprospectusandthedocumentsincorporatedbyreferencehereinandtherein,beforebuyingsharesofourcommonstock.
NYSE symbol "YETI"
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uponthesettlementofnon-employeerestrictedstockunitsoutstandingunderthe2018Plan,withafairvalueof$26.73pershare;and
• 3,341,065sharesofourcommonstockreservedforfutureissuancepursuanttoawardsunderthe2018Plan.
Exceptasotherwiseindicated,allinformationinthisprospectussupplementassumesorreflects:
• noexerciseoftheunderwriter'soptiontopurchaseadditionalsharesfromthesellingstockholders;and
• noexerciseorsettlementofoutstandingstockoptionsorrestrictedstockunits.
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RISK FACTORS
Investinginourcommonstockinvolvesahighdegreeofrisk.Beforemakinganinvestmentdecision,youshouldcarefullyconsidertheinformationinthisprospectussupplementandtheriskfactorsandotherinformationinthedocumentsincorporatedbyreferenceinthisprospectussupplement,includingtheriskfactorsdiscussedundertheheading"RiskFactors"inourmostrecentAnnualReportonForm10-KandeachsubsequentlyfiledQuarterlyReportonForm10-QandanyriskfactorssetforthinourotherfilingswiththeSECpursuanttoSections13(a),13(c),14or15(d)oftheExchangeAct,beforedecidingwhethertoinvestinsharesofourcommonstock.See"WhereYouCanFindMoreInformation"and"InformationWeIncorporateByReference."Eachoftherisksdescribedinthesedocumentscouldmateriallyandadverselyaffectourbusiness,financialcondition,resultsofoperationsandprospects,andcouldresultinapartialorcompletelossofyourinvestment.Additionalrisksanduncertaintiesnotpresentlyknowntous,orthatwecurrentlydeemimmaterial,mayalsoadverselyaffectourbusinessoperations.Inaddition,pastfinancialperformancemaynotbeareliableindicatoroffutureperformanceandhistoricaltrendsshouldnotbeusedtoanticipateresultsortrendsinfutureperiods.
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USE OF PROCEEDS
Thesellingstockholderswillreceiveallofthenetproceedsfromthisoffering.Wewillnotreceiveanyproceedsfromthesaleofsharesbythesellingstockholders.Wewillbearthecostsassociatedwiththisregistrationinaccordancewiththeregistrationrightsagreement.However,thesellingstockholderswillbearanybrokeragecommissions,transfertaxesorunderwritingcommissionsanddiscountsattributabletotheirsaleofsharesofourcommonstock.Formoreinformation,see"SellingStockholders"and"CertainRelationshipsandRelatedPartyTransactionswiththeSellingStockholders."
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SELLING STOCKHOLDERS
Thetablebelowsetsforthinformationregardingthebeneficialownershipofsharesofourcommonstockbythesellingstockholders.
Thenumberofsharesdisclosedinthetablebelowas"beneficiallyowned"arethosebeneficiallyownedasdeterminedundertherulesandregulationsoftheSEC.Suchinformationisnotnecessarilyindicativeofownershipforanyotherpurpose.UndertherulesoftheSEC,apersonisdeemedtobea"beneficialowner"ofasecurityifthatpersonhasorshares"votingpower,"whichincludesthepowertovoteortodirectthevotingofsuchsecurity,or"investmentpower,"whichincludesthepowertodisposeofortodirectthedispositionofsuchsecurity.Undertheserules,morethanonepersonmaybedeemedabeneficialownerofthesamesecuritiesandapersonmaybedeemedabeneficialownerofsecuritiesastowhichhe,sheorithasnoeconomicinterest.
Thenumberofsharesofourcommonstockoutstandingandthepercentageofbeneficialownershipbeforeandafterthisofferingsetforthbelowisbasedon86,786,443sharesofourcommonstockoutstandingasofFebruary7,2020.Beneficialownershipreflectedinthetablebelowincludesthetotalsharesheldbythesellingstockholdersandtheiraffiliates.
Forinformationaboutcertainrelationshipsbetweenusandthesellingstockholders,see"CertainRelationshipsandRelatedPartyTransactionswiththeSellingStockholders"intheaccompanyingprospectus.
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Beneficial Ownership After Resale (Assuming
No Exercise of Option)
Beneficial Ownership After Resale (Assuming
Full Exercise of Option)
Beneficial Ownership
Before Resale
Number of shares offered
(Assuming No Exercise of Option)
Number of shares offered
(Assuming Full Exercise
of Option)
Common Stock Common Stock Common Stock
Name of selling stockholder Number of Shares %
Number of Shares %
Number of Shares %
Cortec(1) 29,647,527 34.2% 11,279,930(7) 18,367,597 21.2% 12,971,919(7) 16,675,608 19.2%RJSIce2,LP(2) 6,544,465 7.5% 1,142,350 5,402,115 6.2% 1,313,703 5,230,762 6.0%RRSIce2,LP(3) 5,103,673 5.9% 1,941,783 3,161,890 3.6% 2,233,050 2,870,623 3.3%YHICGGroupInvestors,LLC(4) 1,671,460 1.9% 635,937 1,035,523 1.2% 731,328 940,132 1.1%
JohnT.Miner(5) 3,342 * 1,272 2,070 * 1,463 1,879 *AllisonS.Klazkin(6) 4,179 * 1,590 2,589 * 1,829 2,350 *
* Lessthan1.0%.
(1) Includes(i)27,339,731sharesofcommonstockheldbyCortecGroupFundV,L.P,(ii)628,815sharesofcommonstockheldbyCortecCo-InvestmentFundV,LLC,(iii)1,671,460sharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,(iv)3,342sharesofcommonstockheldbyJohnT.Miner,and(v)4,179sharesofcommonstockheldbyAllisonS.Klazkin.
CortecManagementV,LLCisthemanaginggeneralpartnerofCortecGroupFundV,L.P.CortecGroupGP,LLCisthemanagerofCortecManagementV,LLCandCortecCo-InvestmentFundV,LLC.ThemannerinwhichtheinvestmentsofCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLCareheld,includingsharesofcommonstock,andanydecisionsconcerningtheirultimatevotinganddisposition,aresubjecttothecontrolofCortecGroupGP,LLC,asmanagerofCortecManagementV,LLCandCortecCo-InvestmentFundV,LLC.ThemanagersofCortecGroupGP,LLCcurrentlyconsistofDavidL.Schnadig,JeffreyA.Lipsitz,MichaelE.Najjar,JeffreyR.ShannonandJonathanA.Stein.Avoteofsuchmanagersholdingatleast662/3%ofCortecGroupGP,LLCisrequiredtoapproveactionsonbehalfofCortecGroupGP,LLCwithrespecttosharesofcommonstockheldbyCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLC.Asaresult,noneofthemanagersofCortecGroupGP,LLChasdirectorindirectvotingordispositivepowerwithrespecttosuchsharesofcommonstockheldbyCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLC.
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CortecManagementV(Co-Invest),LLCisthegeneralpartnerofCortecGroupFundV(Parallel),L.P.ThemannerinwhichtheinvestmentsofCortecGroupFundV(Parallel),L.P.areheld,includingsharesofcommonstock,andanydecisionsconcerningtheirultimatevotinganddisposition,aresubjecttothecontrolofCortecManagementV(Co-Invest),LLC.ThemanagersofCortecManagementV(Co-Invest),LLCcurrentlyconsistofDavidL.Schnadig,JeffreyA.Lipsitz,R.ScottSchaflerandMichaelE.Najjar.AmajorityvoteofsuchmanagersisrequiredtoapproveactionswithrespecttosharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.Asaresult,noneofthemanagersofCortecManagementV(Co-Invest),LLChasdirectorindirectvotingordispositivepowerwithrespecttosuchsharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.
AsCortecGroupFundV(Parallel),L.P.isrequiredbythetermsofitslimitedpartnershipagreementtodisposeofitsequityinvestmentsinthesamemannerandatthesametimeasCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLC,JohnT.MinerandAllisonS.KlazkinmayonlydisposeoftheirrespectiveequityinvestmentsinthesamemannerandatthesametimeasCortecGroupFundV,L.P.,CortecManagementV,LLC,asmanaginggeneralpartnerofCortecGroupFundV,L.P.mayalsobedeemedtohavebeneficialownershipoverthesharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,CortecCo-InvestmentFundV,LLC,JohnT.MinerandAllisonS.Klazkin.CortecGroupGP,LLC,asmanagerofCortecManagementV,LLCmayalsobedeemedtohavebeneficialownershipoverthesharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,JohnT.MinerandAllisonS.Klazkin.Avoteofsuchmanagersholdingatleast662/3%ofCortecGroupGP,LLCisrequiredtoapproveactionsonbehalfofCortecGroupGP,LLCwithrespecttosharesofcommonstockheldbyCortecGroupFundV,L.P.Asaresult,noneofthemanagersofCortecGroupGP,LLChasdirectorindirectvotingordispositivepowerwithrespecttosharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,JohnT.MinerandAllisonS.Klazkin.
EachofthemanagersofCortecGroupGP,LLCandCortecManagementV(Co-Invest),LLCdisclaimsbeneficialownershipofthesharesofcommonstockbeneficiallyownedbysuchentities.EachofthemanagersofCortecGroupGP,LLC,CortecGroupGP,LLCandCortecManagementV,LLCdisclaimsbeneficialownershipofthesharesofcommonstockheldbyJohnT.MinerandAllisonS.Klazkin.
TheaddressofCortecGroupFundV,L.P.,CortecCo-InvestmentFundV,LLC,CortecGroupFundV(Parallel),L.P.,CortecManagementV,LLC,CortecGroupGP,LLC,andCortecManagementV(Co-Invest),LLCis140East45thStreet,43rdFloor,NewYork,NewYork10017.
(2) Represents6,544,465sharesofcommonstockheldbyRJSIce2,LP.RoyJ.SeidersisthemanagerofRJSICEManagement,LLC,thegeneralpartnerofRJSIce2,LP,andmaybedeemedtobeneficiallyownthesharesofcommonstockheldbyRJSIce2,LP.TheaddressofRJSICEManagement,LLCisP.O.Box163325,Austin,Texas78716.
(3) Includes5,103,673sharesofcommonstockheldbyRRSIce2,LP.RyanR.SeidersisthemanagerofRRSICEManagement,LLC,thegeneralpartnerofRRSIce2,LP,andmaybedeemedtobeneficiallyownthesharesofcommonstockheldbyRRSIce2,LP.TheaddressofRRSICEManagement,LLCisP.O.Box163325,Austin,Texas78716.
(4) RDVCorporationisthemanagerofYHICGGroupInvestors,LLC.RobertH.Schierbeek,thechiefexecutiveofficerofRDVCorporation,hasdirectvotinganddispositivepowerwithrespecttothesharesofcommonstockheldbyYHICGGroupInvestors,LLC.TheaddressofYHICGGroupInvestors,LLCis126OttawaAvenueNW,Suite500,GrandRapids,Michigan49503.
(5) TheaddressofJohnT.Mineris140East45thStreet,43rdFloor,NewYork,NewYork10017.
(6) TheaddressofAllisonS.Klazkinis140East45thStreet,43rdFloor,NewYork,NewYork10017.
(7) IncludessharesofcommonstockofferedbyJohnT.MinerandAllisonS.Klazkin.
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UNDERWRITING
BofASecurities,Inc.isactingasunderwriteroftheoffering.Underthetermsandsubjecttotheconditionscontainedinanunderwritingagreementdatedasofthedateofthisprospectussupplement,thesellingstockholders,severallyandnotjointly,haveagreedtoselltotheunderwriter,andtheunderwriterhasagreedtopurchasefromthesellingstockholders,15,000,000sharesofcommonstock.
Subjecttothetermsandconditionssetforthintheunderwritingagreement,theunderwriterhasagreedtopurchaseallthesharesofcommonstockintheoffering,otherthanthosesharescoveredbytheoptiontopurchaseadditionalsharesdescribedbelow,ifanyarepurchased.
Theunderwriterisofferingtheshares,subjecttopriorsale,when,as,andifofferedtoandacceptedbyit,subjecttoapprovaloflegalmattersbyitscounsel,includingthevalidityoftheshares,andotherconditionscontainedintheunderwritingagreement,suchasthereceiptbytheunderwriterofofficer'scertificatesandlegalopinions.Theunderwriterreservestherighttowithdraw,cancel,ormodifyofferstothepublicandtorejectordersinwholeorinpart.
Commissions, Discounts and Expenses
TheunderwriterproposestoofferthecommonstockfromtimetotimeforsaleinoneormoretransactionsontheNYSE,intheover-the-countermarket,throughnegotiatedtransactionsorotherwiseatmarketpricesprevailingatthetimeofsale,atpricesrelatedtoprevailingmarketpricesoratnegotiatedprices,subjecttoreceiptandacceptancebyitandsubjecttoitsrighttorejectanyorderinwholeorinpart.Inconnectionwiththesaleofthecommonstockofferedhereby,theunderwritermaybedeemedtohavereceivedcompensationintheformofunderwritingdiscounts.Theunderwritermayeffectsuchtransactionsbysellingcommonstocktoorthroughdealers,andsuchdealersmayreceivecompensationintheformofdiscounts,concessionsorcommissionsfromtheunderwriterand/orpurchasersofcommonstockforwhomitmayactasagentortowhomitmaysellasprincipal.Theunderwritermayreceivefrompurchasersofthecommonstocknormalbrokeragecommissionsinamountsagreedwithsuchpurchasers.SalesofcommonstockmadeoutsideoftheUnitedStatesmaybemadebyaffiliatesoftheunderwriter.
Theunderwriterispurchasingthecommonstockfromthesellingstockholdersat$31.85pershare,resultinginproceeds,beforeexpenses,tothesellingstockholdersofapproximately$477.8million.
Weestimatethatouroutofpocketexpensesforthisofferingwillbeapproximately$750,000.Wehaveagreedtoreimbursetheunderwriterforcertainofitsexpensesinanamountupto$10,000.
Option to Purchase Additional Shares
Thesellingstockholdersgrantedanoptiontotheunderwriter,exercisablefor30daysafterthedateofthisprospectussupplement,topurchaseinwholeorinpartatanytimeuptoanaggregateof2,250,000additionalsharesat$31.85pershare.
Indemnification
Weandthesellingstockholdershaveagreedtoindemnifytheunderwriteranditscontrolpersonsagainstcertainliabilities,includingliabilitiesundertheSecuritiesAct,ortocontributetopaymentstheunderwriteroritscontrolpersonsmayberequiredtomakeinrespectofthoseliabilities.
No Sales of Similar Securities
We,ourexecutiveofficersanddirectors,andthesellingstockholdershaveagreednottosellordisposeofanycommonstockorsecuritiesconvertibleinto,exchangeablefor,exercisablefor,orrepayablewithcommonstock,for60daysafterthedateofthisprospectussupplementwithoutfirst
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obtainingthewrittenconsentoftheunderwriter.Specifically,weandtheseotherpersonshaveagreed,withcertainlimitedexceptionsnottodirectlyorindirectly:
• offer,pledge,sell,orcontracttosellanycommonstock;
• sellanyoptionorcontracttopurchaseanycommonstock;
• purchaseanyoptionorcontracttosellanycommonstock;
• grantanyoption,right,orwarrantforthesaleofanycommonstock;
• lendorotherwisedisposeofortransferanycommonstock;
• requestordemandthatwefilearegistrationstatementrelatedtothecommonstock;or
• enterintoanyswaporotheragreementthattransfers,inwholeorinpart,theeconomicconsequenceofownershipofanycommonstockwhetheranysuchswaportransactionistobesettledbydeliveryofsharesorothersecurities,incashorotherwise.
Thislock-upprovisionappliestocommonstockandtosecuritiesconvertibleintoorexchangeablefororrepayablewithcommonstockownednoworacquiredlaterbythepersonexecutingtheagreementorforwhichthepersonexecutingtheagreementlateracquiresthepowerofdisposition.Theunderwriterinitssolediscretion,mayreleasethecommonstockandothersecuritiessubjecttothelock-upagreementsdescribedabove,inwholeorinpart,atanytime.
New York Stock Exchange Listing
OurcommonstockislistedonNYSEunderthesymbol"YETI."
Price Stabilization, Short Positions and Penalty Bids
Untilthedistributionofthesharesiscompleted,SECrulesmaylimittheunderwriterandsellinggroupmembersfrombiddingforandpurchasingourcommonstock.However,theunderwritermayengageintransactionsthatstabilizethepriceofourcommonstock,suchasbidsorpurchasestopeg,fix,ormaintainthatprice.
Inconnectionwiththeoffering,theunderwritermaypurchaseandsellourcommonstockintheopenmarket.Thesetransactionsmayincludeshortsales,purchasesontheopenmarkettocoverpositionscreatedbyshortsales,andstabilizingtransactions.Shortsalesinvolvethesalebytheunderwriterofagreaternumberofsharesthanitisrequiredtopurchaseintheoffering."Covered"shortsalesaresalesmadeinanamountnotgreaterthantheunderwriter'soptiontopurchaseadditionalsharesdescribedabove.Theunderwritermaycloseoutanycoveredshortpositionbyeitherexercisingitsoptiontopurchaseadditionalsharesorpurchasingsharesintheopenmarket.Indeterminingthesourceofsharestocloseoutthecoveredshortposition,theunderwriterwillconsider,amongotherthings,thepriceofsharesavailableforpurchaseintheopenmarketcomparedtothepriceatwhichitmaypurchasesharesthroughtheoptiongrantedtoit."Naked"shortsalesaresalesinexcessofsuchoption.Theunderwritermustcloseoutanynakedshortpositionbypurchasingsharesintheopenmarket.Anakedshortpositionismorelikelytobecreatediftheunderwriterisconcernedthattheremaybedownwardpressureonthepriceofourcommonstockintheopenmarketafterpricingthatcouldadverselyaffectinvestorswhopurchaseintheoffering.Stabilizingtransactionsconsistofvariousbidsfororpurchasesofsharesofcommonstockmadebytheunderwriterintheopenmarketpriortothecompletionoftheoffering.
Similartootherpurchasetransactions,theunderwriter'spurchasestocovershortsalesmayhavetheeffectofraisingormaintainingthemarketpriceofourcommonstockorpreventingorretardingadeclineinthemarketpriceofourcommonstock.Asaresult,thepriceofourcommonstockmaybe
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higherthanthepricethatmightotherwiseexistintheopenmarket.TheunderwritermayconductthesetransactionsontheNYSE,intheover-the-countermarket,orotherwise.
Neitherwenortheunderwritermakeanyrepresentationorpredictionastothedirectionormagnitudeofanyeffectthatthetransactionsdescribedabovemayhaveonthepriceofourcommonstock.Inaddition,neitherwenortheunderwritermakeanyrepresentationthatsuchunderwriterwillengageinthesetransactionsorthatthesetransactions,oncecommenced,willnotbediscontinuedwithoutnotice.
Electronic Distribution
Inconnectionwiththeoffering,theunderwriterorcertainsecuritiesdealersmaydistributeprospectusesbyelectronicmeans,suchase-mail.
Other Relationships
Theunderwriteranditsaffiliatesarefullservicefinancialinstitutionsengagedinvariousactivities,whichmayincludesecuritiestrading,commercialandinvestmentbanking,financialadvisory,investmentmanagement,investmentresearch,principalinvestment,hedging,financingandbrokerageactivities.Fromtimetotime,theunderwriteranditsaffiliateshavedirectlyandindirectlyengaged,ormayengage,invariousfinancialadvisoryandinvestmentbankingservicesforusandouraffiliates,forwhichitreceived,ormayreceive,customarycompensation,feesandexpensereimbursement.
Intheordinarycourseofitsvariousbusinessactivities,theunderwriteranditsaffiliatesmayalsomakeorholdabroadarrayofinvestmentsandactivelytradedebtandequitysecurities(orrelatedderivativesecurities)andfinancialinstruments(includingbankloans)fortheirownaccountandfortheaccountsoftheircustomersandmayatanytimeholdlongandshortpositionsinsuchsecuritiesandinstruments.Suchinvestmentandsecuritiesactivitiesmayinvolveoursecuritiesandinstruments(directly,ascollateralsecuringotherobligationsorotherwise).Theunderwriteranditsrespectiveaffiliatesmayalsomakeinvestmentrecommendationsand/orpublishorexpressindependentresearchviewsinrespectofsuchsecuritiesorinstrumentsandmayatanytimehold,orrecommendtoclientsthatitacquires,longand/orshortpositionsinsuchsecuritiesandinstruments.Theunderwriterhasadvisedusthat,exceptasspecificallycontemplatedintheunderwritingagreement,itowesnofiduciarydutyorotherdutiestousinconnectionwiththisoffering,andithasagreementsandrelationshipswith,andowesdutiesto,thirdparties,includingpotentialpurchasersofthesecuritiesinthisoffering,thatmaycreateactual,potentialorapparentconflictsofinterestbetweentheunderwriterandus.
Selling Restrictions
Notice to Prospective Investors in the European Economic Area and in the United Kingdom
InrelationtoeachmemberstateoftheEuropeanEconomicArea,eachofwhichwerefertoasaRelevantState,andtheUnitedKingdom,noofferofordinaryshareswhicharethesubjectoftheofferinghasbeen,orwillbe,madetothepublicinthatRelevantStateorintheUnitedKingdom,priortothepublicationofaprospectusinrelationtotheordinaryshareswhichhasbeenapprovedbythecompetentauthoritythatRelevantStateorintheUnitedKingdom,or,whereappropriate,approvedinanotherRelevantStateandnotifiedtothecompetentauthorityinthatRelevantState,allinaccordancewiththeProspectusRegulation,exceptthatoffersofordinarysharesmaybemadetothepublicinthatRelevantStateorintheUnitedKingdomatanytimeunderthefollowingexemptionsunderRegulation(EU)2017/1129,whichwerefertoastheProspectusRegulation:
(a) toanylegalentitywhichisaqualifiedinvestorasdefinedintheProspectusRegulation;or
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(b) tofewerthan150naturalorlegalpersons(otherthanqualifiedinvestorsasdefinedintheProspectusRegulation),subjecttoobtainingthepriorconsentoftherepresentativesforanysuchoffer;or
(c) inanyothercircumstancesfallingwithinArticle1(4)oftheProspectusRegulation,
providedthatnosuchofferofordinarysharesreferredtoin(a)to(c)aboveshallresultinarequirementfortheCompanyoranyrepresentativetopublishaprospectuspursuanttoArticle3oftheProspectusRegulation,orsupplementaprospectuspursuanttoArticle23oftheProspectusRegulation.
EachpersonlocatedinaRelevantStateorintheUnitedKingdomtowhomanyofferofordinarysharesismadeorwhoreceivesanycommunicationinrespectofanofferofordinaryshares,orwhoinitiallyacquiresanyordinaryshareswillbedeemedtohaverepresented,warranted,acknowledged,andagreedtoandwitheachrepresentativeandtheCompanythat(1)itisa"qualifiedinvestor"withinthemeaningofArticle2(1)(e)oftheProspectusRegulation;and(2)inthecaseofanyordinarysharesacquiredbyitasafinancialintermediaryasthattermisusedinArticle5(1)oftheProspectusRegulation,theordinarysharesacquiredbyitintheofferhavenotbeenacquiredonbehalfof,norhavetheybeenacquiredwithaviewtotheirofferorresaleto,personsinanyRelevantStateorintheUnitedKingdomotherthanqualifiedinvestors,asthattermisdefinedintheProspectusRegulation,orincircumstancesinwhichthepriorconsentoftherepresentativeshasbeengiventotheofferorresale;orwhereordinaryshareshavebeenacquiredbyitonbehalfofpersonsinanyRelevantStateorintheUnitedKingdomotherthanqualifiedinvestors,theofferofthoseordinarysharestoitisnottreatedundertheProspectusRegulationashavingbeenmadetosuchpersons.
TheCompany,therepresentatives,andtheirrespectiveaffiliateswillrelyuponthetruthandaccuracyoftheforegoingrepresentations,acknowledgments,andagreements.
ThisprospectussupplementandaccompanyingprospectushavebeenpreparedonthebasisthatanyofferofsharesinanyRelevantStateorintheUnitedKingdomwillbemadepursuanttoanexemptionundertheProspectusRegulationfromtherequirementtopublishaprospectusforoffersofsharesorothersecuritiesmadetothepublicwithintheterritoriesoftheRelevantStatesorintheUnitedKingdom.AccordinglyanypersonmakingorintendingtomakeanofferinthatRelevantStateorintheUnitedKingdomofshareswhicharethesubjectoftheofferingcontemplatedinthisprospectussupplementmayonlydosoincircumstancesinwhichnoobligationarisesfortheCompanyoranyoftherepresentativestopublishaprospectuspursuanttoArticle3oftheProspectusRegulationinrelationtosuchoffer.NeithertheCompanynortherepresentativeshaveauthorized,nordotheyauthorize,themakingofanyofferofsharesincircumstancesinwhichanobligationarisesfortheCompanyortherepresentativestopublishaprospectusforsuchoffer.
Forthepurposesofthisprovision,theexpressionan"offerofordinarysharestothepublic"inrelationtoanyordinarysharesinanyRelevantStateorintheUnitedKingdommeansthecommunicationinanyformandbyanymeansofsufficientinformationonthetermsoftheofferandtheordinarysharestobeofferedsoastoenableaninvestortodecidetopurchaseorsubscribetheordinaryshares.
ReferencestotheProspectusRegulationincludes,inrelationtotheUnitedKingdom,theProspectusRegulationasitformspartofUnitedKingdomdomesticlawbyvirtueoftheEuropeanUnion(Withdrawal)Act2018.
Theabovesellingrestrictionisinadditiontoanyothersellingrestrictionssetoutbelow.
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Notice to Prospective Investors in the United Kingdom
Thisdocumentisfordistributiononlytopersonswho(i)haveprofessionalexperienceinmattersrelatingtoinvestmentsandwhoqualifyasinvestmentprofessionalswithinthemeaningofArticle19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005(asamended,the"FinancialPromotionOrder"),(ii)arepersonsfallingwithinArticle49(2)(a)to(d)("highnetworthcompanies,unincorporatedassociationsetc.")oftheFinancialPromotionOrder,(iii)areoutsidetheUnitedKingdom,or(iv)arepersonstowhomaninvitationorinducementtoengageininvestmentactivity(withinthemeaningofSection21oftheFinancialServicesandMarketsAct2000,asamended("FSMA"))inconnectionwiththeissueorsaleofanysecuritiesmayotherwiselawfullybecommunicatedorcausedtobecommunicated(allsuchpersonstogetherbeingreferredtoas"relevantpersons").Thisdocumentisdirectedonlyatrelevantpersonsandmustnotbeactedonorreliedonbypersonswhoarenotrelevantpersons.Anyinvestmentorinvestmentactivitytowhichthisdocumentrelatesisavailableonlytorelevantpersonsandwillbeengagedinonlywithrelevantpersons.
Notice to Prospective Investors in Switzerland
ThesharesmaynotbepubliclyofferedinSwitzerlandandwillnotbelistedontheSIXSwissExchange,orSIX,oronanyotherstockexchangeorregulatedtradingfacilityinSwitzerland.Thisdocumenthasbeenpreparedwithoutregardtothedisclosurestandardsforissuanceprospectusesunderart.652aorart.1156oftheSwissCodeofObligationsorthedisclosurestandardsforlistingprospectusesunderart.27ff.oftheSIXListingRulesorthelistingrulesofanyotherstockexchangeorregulatedtradingfacilityinSwitzerland.NeitherthisdocumentnoranyotherofferingormarketingmaterialrelatingtothesharesortheofferingmaybepubliclydistributedorotherwisemadepubliclyavailableinSwitzerland.
Neitherthisdocumentnoranyotherofferingormarketingmaterialrelatingtotheoffering,theCompany,theshareshavebeenorwillbefiledwithorapprovedbyanySwissregulatoryauthority.Inparticular,thisdocumentwillnotbefiledwith,andtheofferofshareswillnotbesupervisedby,theSwissFinancialMarketSupervisoryAuthorityFINMAandtheofferofshareshasnotbeenandwillnotbeauthorizedundertheSwissFederalActonCollectiveInvestmentSchemes,orCISA.TheinvestorprotectionaffordedtoacquirersofinterestsincollectiveinvestmentschemesundertheCISAdoesnotextendtoacquirersofshares.
Notice to Prospective Investors in the Dubai International Financial Centre
ThisprospectussupplementandaccompanyprospectusrelatetoanExemptOfferinaccordancewiththeMarketsRulesoftheDubaiFinancialServicesAuthority,ortheDFSA.ThisprospectussupplementandaccompanyingprospectusareintendedfordistributiononlytopersonsofatypespecifiedintheMarketsRulesoftheDFSA.Itmustnotbedeliveredto,orreliedonby,anyotherperson.TheDFSAhasnoresponsibilityforreviewingorverifyinganydocumentsinconnectionwithExemptOffers.TheDFSAhasnotapprovedthisprospectusandaccompanyingprospectusnortakenstepstoverifytheinformationsetforthhereinandhasnoresponsibilityfortheprospectusandaccompanyingprospectus.Thesharestowhichthisprospectussupplementandaccompanyingprospectusrelatemaybeilliquidand/orsubjecttorestrictionsontheirresale.Prospectivepurchasersofthesharesofferedshouldconducttheirownduediligenceontheshares.Ifyoudonotunderstandthecontentsofthisprospectussupplementandaccompanyingprospectusyoushouldconsultanauthorizedfinancialadvisor.
InrelationtoitsuseintheDubaiInternationalFinancialCentre,ortheDIFC,thisdocumentisstrictlyprivateandconfidentialandisbeingdistributedtoalimitednumberofinvestorsandmustnotbeprovidedtoanypersonotherthantheoriginalrecipient,andmaynotbereproducedorusedfor
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anyotherpurpose.TheinterestsinthesharesmaynotbeofferedorsolddirectlyorindirectlytothepublicintheDIFC.
Notice to Prospective Investors in Australia
Noprospectus,productdisclosurestatementorotherdisclosuredocumenthasbeenorwillbelodgedwiththeAustralianSecuritiesandInvestmentsCommissioninrelationtotheoffering.Thisprospectussupplementandaccompanyingprospectusdonotconstituteaprospectus,productdisclosurestatementorotherdisclosuredocumentundertheCorporations Act 2001(Cth),ortheCorporationsAct,anddoesnotpurporttoincludetheinformationrequiredforaprospectus,productdisclosurestatementorotherdisclosuredocumentundertheCorporationsAct.
AnyofferinAustraliaofthesharesmayonlybemadetopersons,referredtoastheExemptInvestors,whoare"sophisticatedinvestors"(withinthemeaningofsection708(8)oftheCorporationsAct),"professionalinvestors"(withinthemeaningofsection708(11)oftheCorporationsAct)orotherwisepursuanttooneormoreexemptionscontainedinsection708oftheCorporationsActsothatitislawfultooffertheshareswithoutdisclosuretoinvestorsunderChapter6DoftheCorporationsAct.AnyofferinAustraliaofthesharescanonlybeacceptedbyarecipientiftheyareanExemptInvestor.
ThesharesappliedforbyExemptInvestorsinAustraliamustnotbeofferedforsaleinAustraliaintheperiodof12monthsafterthedateofallotmentundertheoffering,exceptincircumstanceswheredisclosuretoinvestorsunderChapter6DoftheCorporationsActwouldnotberequiredpursuanttoanexemptionundersection708oftheCorporationsActorotherwiseorwheretheofferispursuanttoadisclosuredocumentwhichcomplieswithChapter6DoftheCorporationsAct.AnypersonacquiringsharesmustobservesuchAustralianon-salerestrictions.
Noneofthisprospectussupplementandaccompanyingprospectus,theoffercontainedhereinnoranyotherdisclosuredocumentinrelationtothesharescanbepartiallyorwhollydistributed,published,reproduced,transmittedorotherwisemadeavailableordisclosedbyrecipientstoanyotherpersoninAustraliaotherthananExemptInvestor.
Thisprospectussupplementandaccompanyingprospectuscontaingeneralinformationonlyanddonottakeaccountoftheinvestmentobjectives,financialsituationorparticularneedsofanyparticularperson.Beforemakinganinvestmentdecision,ExemptInvestorsshouldconsiderwhethertheinformationinthisprospectussupplementandaccompanyingprospectusandthesharesofferedunderthisprospectussupplementandaccompanyingprospectusareappropriatetotheirneeds,objectivesandfinancialcircumstancesandseekexpertadviceonthosematters.
Notice to Prospective Investors in Hong Kong
TheshareshavenotbeenofferedorsoldandwillnotbeofferedorsoldinHongKong,bymeansofanydocument,otherthan(a)to"professionalinvestors"asdefinedintheSecuritiesandFuturesOrdinance(Cap.571oftheLawsofHongKong)andanyrulesmadethereunder;or(b)inothercircumstanceswhichdonotresultinthedocumentbeinga"prospectus"asdefinedintheCompanies(WindingUpandMiscellaneousProvisions)Ordinance(Cap.32oftheLawsofHongKong),orwhichdonotconstituteanoffertothepublicwithinthemeaningthereunder.Noadvertisement,invitationordocumentrelatingtotheshareshasbeenormaybeissuedorhasbeenormaybeinthepossessionofanypersonforthepurposesofissue,whetherinHongKongorelsewhere,whichisdirectedat,orthecontentsofwhicharelikelytobeaccessedorreadby,thepublicofHongKong(exceptifpermittedtodosounderthesecuritieslawsofHongKong)otherthanwithrespecttoshareswhichareorareintendedtobedisposedofonlytopersonsoutsideHongKongoronlyto"professionalinvestors"asdefinedintheSecuritiesandFuturesOrdinance(Cap.571oftheLawsofHongKong)andanyrulesmadethereunder.
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Notice to Prospective Investors in Japan
ThisofferingoftheshareshasnotbeenandwillnotberegisteredunderArticle4,Paragraph1oftheFinancialInstrumentsandExchangeActofJapan(ActNo.25of1948,asamended)(the"FIEA")and,accordingly,noneofthesharesnoranyinterestthereinmaybeofferedorsold,directlyorindirectly,inJapanorto,orforthebenefitofanyJapanesePersonortoothersforre-offeringorresale,directlyorindirectly,inJapanorto,orforthebenefitof,anyJapanesePerson,exceptpursuanttoanexemptionfromtheregistrationrequirementsof,andotherwiseincompliancewith,theFIEAandallotherapplicablelaws,regulations,andministerialordinancesorguidelinespromulgatedbyrelevantJapanesegovernmentalorregulatoryauthoritiesineffectattherelevanttime.Forthepurposesofthisparagraph,"JapanesePerson"shallmeananypersonresidentinJapan,includinganycorporationorotherentityorganizedunderthelawsofJapan.
Notice to Prospective Investors in Singapore
ThisprospectussupplementandaccompanyingprospectushavenotbeenregisteredasaprospectuswiththeMonetaryAuthorityofSingapore.Accordingly,thisprospectussupplementandaccompanyingprospectusandanyotherdocumentormaterialinconnectionwiththeofferorsale,orinvitationforsubscriptionorpurchase,ofsharesmaynotbecirculatedordistributed,normaythesharesbeofferedorsold,orbemadethesubjectofaninvitationforsubscriptionorpurchase,whetherdirectlyorindirectly,topersonsinSingaporeotherthan(i)toaninstitutionalinvestorunderSection274oftheSecuritiesandFuturesAct,Chapter289ofSingapore,asmodifiedoramendedfromtimetotime,whichwerefertoastheSFA,(ii)toarelevantpersonpursuanttoSection275(1),oranypersonpursuanttoSection275(1A),andinaccordancewiththeconditionsspecifiedinSection275,oftheSFA,or(iii)otherwisepursuantto,andinaccordancewiththeconditionsof,anyotherapplicableprovisionoftheSFA.
(a) WherethesharesaresubscribedorpurchasedunderSection275oftheSFAbyarelevantpersonwhichis:
(b) acorporation(whichisnotanaccreditedinvestor(asdefinedinSection4AoftheSFA))thesolebusinessofwhichistoholdinvestmentsandtheentiresharecapitalofwhichisownedbyoneormoreindividuals,eachofwhomisanaccreditedinvestor;or
(c) atrust(wherethetrusteeisnotanaccreditedinvestor)whosesolepurposeistoholdinvestmentsandeachbeneficiaryofthetrustisanindividualwhoisanaccreditedinvestor,securitiesorsecurities-basedderivativescontracts(eachtermasdefinedinSection2(1)oftheSFA)ofthatcorporationorthebeneficiaries'rightsandinterest(howsoeverdescribed)inthattrustshallnotbetransferredwithinsixmonthsafterthatcorporationorthattrusthasacquiredthesharespursuanttoanoffermadeunderSection275oftheSFAexcept:
i. toaninstitutionalinvestorortoarelevantpersondefinedinSection275(2)oftheSFA,ortoanypersonarisingfromanofferreferredtoinSection275(1A)orSection276(4)(i)(B)oftheSFA;
ii. wherenoconsiderationisorwillbegivenforthetransfer;
iii. wherethetransferisbyoperationoflaw;
iv. asspecifiedinSection276(7)oftheSFA;or
v. asspecifiedinRegulation37AoftheSecuritiesandFutures(OffersofInvestments)(SecuritiesandSecurities-basedDerivativesContracts)Regulations2018.
SolelyforthepurposesofitsobligationspursuanttoSection309BoftheSFA,wehavedetermined,andherebynotifyallrelevantpersons(asdefinedintheCMPRegulations2018),thatthe
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sharesareprescribedcapitalmarketsproducts(asdefinedintheCMPRegulations2018)andExcludedInvestmentProducts(asdefinedintheMASNoticeSFA04-N12:NoticeontheSaleofInvestmentProductsandMASNoticeFAA-N16:NoticeofRecommendationsofInvestmentProducts).
Notice to Prospective Investors in Canada
Thesharesmaybesoldonlytopurchaserspurchasing,ordeemedtobepurchasing,asprincipalthatareaccreditedinvestors,asdefinedinNationalInstrument45-106Prospectus Exemptionsorsubsection73.3(1)oftheSecurities Act(Ontario),andarepermittedclients,asdefinedinNationalInstrument31-103Registration Requirements, Exemptions and Ongoing Registrant Obligations.Anyresaleofthesharesmustbemadeinaccordancewithanexemptionfrom,orinatransactionnotsubjectto,theprospectusrequirementsofapplicablesecuritieslaws.
SecuritieslegislationincertainprovincesorterritoriesofCanadamayprovideapurchaserwithremediesforrescissionordamagesifthisprospectussupplementandaccompanyingprospectus(includinganyamendmentthereto)containsamisrepresentation,providedthattheremediesforrescissionordamagesareexercisedbythepurchaserwithinthetimelimitprescribedbythesecuritieslegislationofthepurchaser'sprovinceorterritory.Thepurchasershouldrefertoanyapplicableprovisionsofthesecuritieslegislationofthepurchaser'sprovinceorterritoryforparticularsoftheserightsorconsultwithalegaladvisor.
Pursuanttosection3A.3(or,inthecaseofsecuritiesissuedorguaranteedbythegovernmentofanon-Canadianjurisdiction,section3A.4)ofNationalInstrument33-105Underwriting Conflicts(NI33-105),theunderwriterisnotrequiredtocomplywiththedisclosurerequirementsofNI33-105regardingunderwriterconflictsofinterestinconnectionwiththisoffering.
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LEGAL MATTERS
ThevalidityofthecommonstocktobeissuedinthisofferingandcertainotherlegalmatterswithrespecttotheofferingwillbepasseduponforusbyO'Melveny&MyersLLP.CertainlegalmattersinconnectionwiththisofferingwillbepasseduponfortheunderwriterbyLatham&WatkinsLLP.
EXPERTS
Theconsolidatedfinancialstatementsandmanagement'sassessmentoftheeffectivenessofinternalcontroloverfinancialreportingincorporatedbyreferenceinthisprospectussupplementandelsewhereintheregistrationstatementhavebeenincorporatedbyreferenceinrelianceuponthereportsofGrantThorntonLLP,independentregisteredpublicaccountants,upontheauthorityofsaidfirmasexpertsinaccountingandauditing.
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PROSPECTUS
YETI Holdings, Inc. 17,250,000 Shares of Common Stock
Offered, from time to time, by the Selling Stockholders
Fromtimetotimeinoneormoreofferings,thesellingstockholdersidentifiedinthisprospectusmayofferandsellupto17,250,000sharesofourcommonstock.Thesellingstockholdersacquiredthesharesofcommonstockofferedbythisprospectusinaprivateplacement.Weareregisteringtheofferandsaleofthesharesofcommonstockbythesellingstockholderstosatisfyregistrationrightsthatwegrantedtothesellingstockholders.Theregistrationofthesesharesofourcommonstockdoesnotnecessarilymeanthatanyofourcommonstockwillbesoldbythesellingstockholders.Wewillnotreceiveanyproceedsfromtheresaleofsharesofcommonstock,fromtimetotimeinoneormoreofferings,bythesellingstockholders,butwehaveagreedtopaysubstantiallyalloftheexpensesincidentaltotheregistration,offeringandsaleofthecommonstockbythesellingstockholders,exceptthatwewillnotbearanybrokers'orunderwriters'discountsandcommissions,feesandexpensesofcounseltounderwritersorbrokers,transfertaxesortransferfeesrelatingtothesaleofsharesofourcommonstockbythesellingstockholders.
Thisprospectusprovidesadescriptionofthecommonstockthesellingstockholdersmayoffer.Eachtimethesellingstockholderssellcommonstock,we,orpartiesactingonourbehalf,willprovideaprospectussupplementand/orfreewritingprospectusthatwillcontainspecificinformationaboutthetermsofthatofferingandthecommonstockbeingsoldinthatoffering.Theapplicableprospectussupplementand/orfreewritingprospectusmayalsoadd,updateorchangeinformationcontainedinthisprospectus.Iftheinformationvariesbetweenthisprospectusandtheaccompanyingprospectussupplementorfreewritingprospectus,youshouldrelyontheinformationintheprospectussupplementorfreewritingprospectus.Youshouldcarefullyreadthisprospectusandanyprospectussupplementandfreewritingprospectusaccompanyingthisprospectus,togetherwithanydocumentsincorporatedbyreferencehereinortherein,beforeyouinvestinourcommonstock.
OurcommonstockislistedontheNewYorkStockExchange(the"NYSE")underthesymbol"YETI."OnFebruary14,2020,thelastreportedsalepriceofourcommonstockontheNYSEwas$32.84pershare.
Investment in any securities offered by this prospectus involves a high degree of risk. Please read carefully the sectionentitled "Risk Factors" on page 2 of this prospectus, the "Risk Factors" section contained in the applicable prospectussupplement and/or free writing prospectus and the risk factors included and incorporated by reference in this prospectus orthe applicable prospectus supplement.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed uponthe adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
ThedateofthisprospectusisFebruary18,2020.
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i
ABOUTTHISPROSPECTUS iiWHEREYOUCANFINDMOREINFORMATION ivINCORPORATIONBYREFERENCE vFORWARD-LOOKINGSTATEMENTS viYETIHOLDINGS,INC. 1RISKFACTORS 2USEOFPROCEEDS 3DESCRIPTIONOFCAPITALSTOCK 4CERTAINRELATIONSHIPSANDRELATEDPARTYTRANSACTIONSWITHSELLINGSTOCKHOLDERS 9SELLINGSTOCKHOLDERS 12PLANOFDISTRIBUTION 15LEGALMATTERS 18EXPERTS 18
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ABOUT THIS PROSPECTUS
ThisprospectusispartofanautomaticshelfregistrationstatementonFormS-3thatwefiledwiththeSecuritiesandExchangeCommission(the"SEC")asa"well-knownseasonedissuer"asdefinedinRule405undertheSecuritiesActof1933,asamended(the"SecuritiesAct"),utilizinga"shelf"registrationorcontinuousofferingprocess.Underthisshelfregistrationprocess,thesellingstockholdersmay,fromtimetotimeinoneormoreofferings,sellupto17,250,000sharesofcommonstock,atpricesandontermstobedeterminedbymarketconditionsatthetimeoftheoffering.
Thisprospectusprovidesyouwithageneraldescriptionofthecommonstockthesellingstockholdersmayoffer.Eachtimethesellingstockholderssellcommonstockpursuanttotheregistrationstatementofwhichthisprospectusformsapart,we,orpartiesactingonourbehalf,willprovideaprospectussupplementand/orfreewritingprospectusthatwillcontainspecificinformationaboutthetermsofthatofferingandthecommonstockbeingsoldinthatoffering.Theapplicableprospectussupplementorfreewritingprospectusmayalsoadd,updateorchangeinformationcontainedinthisprospectus.Iftheinformationvariesbetweenthisprospectusandtheaccompanyingprospectussupplementorfreewritingprospectus,youshouldrelyontheinformationintheprospectussupplementorfreewritingprospectus.
Youshouldrelyonlyontheinformationcontainedorincorporatedbyreferenceinthisprospectus,anyprospectussupplementandanyfreewritingprospectuspreparedbyoronbehalfofusortowhichwehavereferredyou.Wehavenotauthorizedanyone,includingthesellingstockholders,toprovideyouwithdifferentinformation.Ifanyoneprovidesyouwithdifferentorinconsistentinformation,youshouldnotrelyonit.Wetakenoresponsibilityfor,andcanprovidenoassuranceastothereliabilityof,anyotherinformationthatothersmaygiveyou.
Beforepurchasinganycommonstock,youshouldcarefullyreadthisprospectus,anyprospectussupplementandanyfreewritingprospectus,togetherwiththeadditionalinformationdescribedundertheheading"IncorporationbyReference."Youshouldassumethattheinformationcontainedinthisprospectus,anyprospectussupplementoranyfreewritingprospectusisaccurateonlyasofthedateonitsrespectivecover,andthatanyinformationincorporatedbyreferenceisaccurateonlyasofthedateofthedocumentincorporatedbyreference,unlessweindicateotherwise.Ourbusiness,financialcondition,resultsofoperationsandprospectsmayhavechangedsincethosedates.Thisprospectuscontainssummariesofcertainprovisionscontainedinsomeofthedocumentsdescribedherein,butreferenceismadetotheactualdocumentsforcompleteinformation.Allofthesummariescontainedhereinarequalifiedintheirentiretybytheactualdocuments.Copiesofsomeofthedocumentsreferredtohereinhavebeenfiled,willbefiledorwillbeincorporatedbyreferenceasexhibitstotheregistrationstatementofwhichthisprospectusisapart,andyoumayobtaincopiesofthosedocumentsasdescribedbelowundertheheading"WhereYouCanFindMoreInformation."
Thisprospectusandanyapplicableprospectussupplementorfreewritingprospectusdonotconstituteanoffertosellorthesolicitationofanoffertobuyanycommonstockotherthantheregisteredcommonstocktowhichtheyrelate.Neitherwenoranysellingstockholderaremakingofferstosellanycommonstockdescribedinthisprospectusinanyjurisdictioninwhichanofferorsolicitationisnotauthorizedorinwhichthepersonmakingsuchofferorsolicitationisnotqualifiedtodosoortoanyonetowhomitisunlawfultomakeanofferorsolicitation.
NoactionisbeingtakeninanyjurisdictionoutsidetheUnitedStatestopermitapublicofferingofthecommonstockorpossessionordistributionofthisprospectussupplementinthatjurisdiction.PersonswhocomeintopossessionofthisprospectussupplementinjurisdictionsoutsidetheUnitedStatesarerequiredtoinformthemselvesaboutandtoobserveanyrestrictionsastothisofferingandthedistributionofthisprospectussupplementapplicabletothatjurisdiction.
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Unlessotherwiseexpresslyindicatedorthecontextotherwiserequires,whenthisprospectus,anyprospectussupplementoranyfreewritingprospectususestheterms"Company,""YETI,""we,""our"and"us"refertoYETIHoldings,Inc.anditsconsolidatedsubsidiaries.Weoperateona"52-to53-week"fiscalyearendingontheSaturdayclosestinproximitytoDecember31,suchthateachquarterlyperiodwillbe13weeksinlength,exceptduringa53-weekyearwhenthefourthquarterwillbe14weeks.Whenthisprospectus,anyprospectussupplementoranyfreewritingprospectusreferstoparticularyearsorquartersinconnectionwiththediscussionofourresultsofoperationsorfinancialcondition,thosereferencesmeantherelevantfiscalyearsandfiscalquarters,unlessotherwisestated.
Theinformationinthisprospectus,inanyaccompanyingprospectussupplement,inanyfreewritingprospectusandinthedocumentsincorporatedbyreferenceordeemedincorporatedbyreferencehereinorthereinconcerningmarketshare,ranking,industrydataandforecasts,includingbutnotlimitedtodataregardingtheestimatedsizeofthemarket,projectedgrowthrates,andperceptionsandpreferencesofconsumers,isobtainedfromindustrysources,third-partystudiesandsurveys,includingmarketanalysesandreports,publicfilingsandinternalcompanysources.Industrypublications,surveysandforecastsgenerallystatethattheinformationcontainedthereinhasbeenobtainedfromsourcesbelievedtobereliable,buttherecanbenoassuranceastotheaccuracyorcompletenessofincludedinformation.Althoughwebelievethatthispubliclyavailableinformationandtheinformationprovidedbytheseindustrysourcesisreliable,wehavenotindependentlyverifiedanyofthedatafromthird-partysources,norhaveweascertainedtheunderlyingeconomicassumptionsreliedupontherein.Whilewearenotawareofanymisstatementsregardinganyindustrydatapresentedinthisprospectus,ourestimates,inparticularastheyrelatetomarketshareandourgeneralexpectations,involverisksanduncertaintiesandaresubjecttochangebasedonvariousfactors,includingthosediscussedunder"RiskFactors."
Trademarks, Trade Names, and Service Marks
Weusevarioustrademarks,tradenames,andservicemarksinourbusiness,including,withoutlimitation,YETI®,Tundra®,Hopper®,HopperFlip®,YETITANK®,Rambler®,Colster®,Roadie®,BUILTFORTHEWILD®,LOAD-AND-LOCK®,YETIAuthorized™,YETIPRESENTS™,YETICustomShop™,Panga®,LoadOut®,Camino®,Hondo®,SideKick®,SideKickDry®,Silo®,YETIICE™,EasyBreathe™,FlexGrid™,PermaFrost™,T-Rex™,Haul™,NeverFlat™,StrongArm™,Vortex™,SteadySteel™,HopperBackFlip™,ThickSkin™,DryHaul™,SureStrong™,LipGrip™,NoSweat™,Boomer™,Tocayo™,Lowlands™,TripleGrip™,TripleHaul™,Hauler™,Over-the-Nose™,FatLid™,MagCap™,MagSlider™,DoubleHaul™,HydroLok™,ColdCell™,U-Dock™,Hitchpoint™,WildlyStronger!KeepIceLonger!®,YETICoolers™,LoadOutGoBox™,PackAttic™,Wildproof™,Bearfoot™,GridGuard™,Diehard™,Doublebarrel™,YETIHopper®,YETIRamblerColster®,RamblerOn®,YETIRambler®,YETIBrick®,Flip™,TundraHaul™,HotShot™,ColdcellFlex™,ThermoSnap™,Daytrip®,Crossroads™,ColorInspiredByTrueEvents™,Trailhead™,andYETIVSERIES™.YETIalsousestradedressforitsdistinctiveproductdesigns.Forconvenience,wemaynotincludethe®or™symbolsinthisprospectusorthedocumentsincorporatedbyreference,butsuchomissionisnotmeanttoanddoesnotindicatethatwewouldnotprotectourintellectualpropertyrightstothefullestextentallowedbylaw.Anyothertrademarks,tradenames,orservicemarksreferredtointhisprospectusorthedocumentsthatareincorporatedbyreferencethatarenotownedbyusarethepropertyoftheirrespectiveowners.
Industry, Market, and Other Data
Thisprospectus,includingthedocumentsincorporatedbyreference,includesestimates,projections,andotherinformationconcerningourindustryandmarketdata,includingdataregardingtheestimatedsizeofthemarket,projectedgrowthrates,andperceptionsandpreferencesofconsumers.Weobtainedthisdatafromindustrysources,third-partystudies,includingmarketanalysesandreports,andinternalcompanysurveys.Industrysourcesgenerallystatethattheinformationcontainedthereinhasbeenobtainedfromsourcesbelievedtobereliable.Althoughweareresponsibleforallofthedisclosurecontainedinthisprospectus,andwebelievetheindustryandmarketdatatobereliableasofthedateofthisprospectus,thisinformationcouldprovetobeinaccurate.
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WHERE YOU CAN FIND MORE INFORMATION
ThisprospectusisapartofaregistrationstatementonFormS-3thatwehavefiledwiththeSECundertheSecuritiesActanddoesnotcontainalloftheinformationintheregistrationstatement.ThefullregistrationstatementmaybeobtainedfromtheSECorasindicatedbelow.StatementsinthisprospectusconcerninganydocumentwefiledasanexhibittotheregistrationstatementorthatweotherwisefiledwiththeSECarenotintendedtobecomprehensiveandarequalifiedbyreferencetothesefilings.Youshouldreviewthecompletedocumenttoevaluatethesestatements.YoucanreviewacopyoftheregistrationstatementavailableontheSEC'swebsiteatwww.sec.gov.
Inaddition,wearesubjecttotheinformationalrequirementsoftheSecuritiesExchangeActof1934,asamended("theExchangeAct"),and,inaccordancewiththeExchangeAct,fileannual,quarterlyandcurrentreports,proxyandinformationstatementsandotherinformationwiththeSEC.OurSECfilingsareavailabletothepublicfreeofchargeontheSEC'swebsiteatwww.sec.gov.OurfilingswiththeSECarealsoavailablefreeofchargeonourwebsiteatwww.YETI.com.Wemaypostinformationthatisimportanttoinvestorsonourwebsite.Informationcontainedonourwebsiteisnotincorporatedbyreferenceintothisprospectusandyoushouldnotconsiderinformationcontainedonourwebsitetobepartofthisprospectus.YoumayalsorequestacopyofourSECfilings,atnocost,bywritingortelephoningusatthefollowingaddressandtelephonenumber:
YETIHoldings,Inc.Attention:LegalDepartment7601SouthwestParkwayAustin,Texas78735
(512)394-9384
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INCORPORATION BY REFERENCE
TheSECallowsusto"incorporatebyreference"intothisprospectustheinformationwefilewithit,whichmeansthatwecandiscloseimportantinformationtoyoubyreferringyoutothosedocuments.Theinformationincorporatedbyreferenceisconsideredtobepartofthisprospectus.Anystatementcontainedinadocumentincorporatedorconsideredtobeincorporatedbyreferenceinthisprospectuswillbeconsideredtobemodifiedorsupersededforpurposesofthisprospectustotheextentastatementcontainedinthisprospectusorinanyothersubsequentlyfileddocumentthatisorisdeemedtobeincorporatedbyreferenceinthisprospectusmodifiesorsupersedessuchstatement.Weincorporatebyreferenceinthisprospectusthefollowinginformation(otherthan,ineachcase,documentsorinformationdeemedtohavebeenfurnishedandnotfiledinaccordancewithSECrules):
• ourAnnualReportonForm10-KforthefiscalyearendedDecember28,2019(filedwiththeSEConFebruary18,2020);
• theinformationspecificallyincorporatedbyreferenceintoourAnnualReportonForm10-KfortheyearendedDecember29,2018fromourDefinitiveProxyStatementonSchedule14A(filedwiththeSEConApril4,2019);
• ourCurrentReportonForm8-KfiledwiththeSEConFebruary4,2020;and
• thedescriptionofourcommonstock,parvalue$0.01pershare,containedinExhibit4.5ofourAnnualReportonForm10-KfortheyearendedDecember28,2019(filedwiththeSEConFebruary18,2020),whichupdatedthedescriptionthereofcontainedinourRegistrationStatementonForm8-AinitiallyfiledwiththeSEConOctober23,2018,includinganyamendmentsorreportsfiledforthepurposeofupdatingsuchdescription.
WealsoincorporatebyreferenceeachofthedocumentsthatwefilewiththeSECunderSections13(a),13(c),14or15(d)oftheExchangeActonorafterthedateofthisprospectusandpriortotheterminationoftheofferingsunderthisprospectusandanyprospectussupplement.Thesedocumentsincludeperiodicreports,suchasAnnualReportsonForm10-K,QuarterlyReportsonForm10-QandCurrentReportsonForm8-K,aswellasproxystatements.Wewillnot,however,incorporatebyreferenceinthisprospectusanydocumentsorportionsthereofthatarenotdeemed"filed"withtheSEC,includinganyinformationfurnishedpursuanttoItem2.02orItem7.01ofourCurrentReportsonForm8-Kafterthedateofthisprospectusunless,andexcepttotheextent,specifiedinsuchCurrentReports.
Wewillprovidetoeachperson,includinganybeneficialowner,towhomaprospectus(oranoticeofregistrationinlieuthereof)isdeliveredacopyofanyofthesefilings(otherthananexhibittothesefilings,unlesstheexhibitisspecificallyincorporatedbyreferenceasanexhibittothisprospectus)atnocost,uponarequesttousbywritingortelephoningusattheaddressandtelephonenumbersetforthaboveunder"WhereYouCanFindMoreInformation."
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FORWARD-LOOKING STATEMENTS
Statementsinthisprospectus,includingthedocumentsthatareincorporatedbyreference,thatarenothistoricalfactsare"forward-lookingstatements"withinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheExchangeAct.Theseforward-lookingstatementsarebasedonourcurrentintent,beliefandexpectations.Weclaimtheprotectionofthesafeharborforforward-lookingstatementscontainedinthePrivateSecuritiesLitigationReformActof1995forallforward-lookingstatements.Thesestatementsareoften,butnotalways,madethroughtheuseofwordsorphrasessuchas"anticipate,""believes,""can,""could,""may,""predicts,""potential,""should,""will,""estimate,""plans,""projects,""continuing,""ongoing,""expects,""intends"andotherwordsandtermsofsimilarmeaninginconnectionwithanydiscussionofthetimingornatureoffutureoperatingorfinancialperformanceorothereventsortrends.Forexample,allstatementswemakerelatingtoourplansandobjectivesforfutureoperations,growthorinitiativesandstrategiesareforward-lookingstatements.
Theseforward-lookingstatementsarebasedoncurrentexpectations,estimates,forecastsandprojectionsaboutourbusinessandtheindustryinwhichweoperateandourmanagement'sbeliefsandassumptions.Wederivemanyofourforward-lookingstatementsfromourownoperatingbudgetsandforecasts,whicharebaseduponmanydetailedassumptions.Whilewebelievethatourassumptionsarereasonable,wecautionpredictingtheimpactofknownfactorsisverydifficult,andwecannotanticipateallfactorsthatcouldaffectouractualresults.Allofourforward-lookingstatementsaresubjecttorisksanduncertaintiesthatmaycauseouractualresultstodiffermateriallyfromourexpectations.Thesestatementsareonlypredictionsandinvolveestimates,knownandunknownrisks,assumptionsanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedinsuchstatements,includingasaresultofthefollowingfactors,amongothers:
• ourabilitytomaintainandstrengthenourbrandandgenerateandmaintainongoingdemandforourproducts;
• ourabilitytosuccessfullydesign,developandmarketnewproducts;
• ourabilitytoeffectivelymanageourgrowth;
• ourabilitytoexpandintoadditionalconsumermarkets,andoursuccessindoingso;
• thesuccessofourinternationalexpansionplans;
• ourabilitytocompeteeffectivelyintheoutdoorandrecreationmarketandprotectourbrand;
• thelevelofcustomerspendingforourproducts,whichissensitivetogeneraleconomicconditionsandotherfactors;
• problemswith,orlossof,ourthird-partycontractmanufacturersandsuppliers,oraninabilitytoobtainrawmaterials;
• fluctuationsinthecostandavailabilityofrawmaterials,equipment,labor,andtransportationandsubsequentmanufacturingdelaysorincreasedcosts;
• theimplementationofannounced,ortheenactmentofnew,tariffsbytheU.S.governmentorbycountriestowhichweexportourproductsorrawmaterials;
• ourabilitytoaccuratelyforecastdemandforourproductsandourresultsofoperations;
• ourrelationshipswithournational,regional,andindependentretailers,whoaccountforasignificantportionofoursales;
• theimpactofnaturaldisastersandfailuresofourinformationtechnologyonouroperationsandtheoperationsofourmanufacturingpartners;
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• ourabilitytoattractandretainskilledpersonnelandseniormanagement,andtomaintainthecontinuedeffortsofourmanagementandkeyemployees;
• theimpactofourindebtednessonourabilitytoinvestintheongoingneedsofourbusiness;and
• theimpactofourlossof"controlledcompany"exceptionsunderNYSElistingstandards,subjecttoapplicablephase-inperiods,andourinabilitytorelyonreduceddisclosurerequirementsasaresultofnolongerqualifyingasan"emerginggrowthcompany"undertheJumpstartOurBusinessStartupsActof2012.
Theaboveisnotacompletelistoffactorsoreventsthatcouldcauseactualresultstodifferfromourexpectations,andwecannotpredictallofthem.Allwrittenandoralforward-lookingstatementsattributabletous,orpersonsactingonourbehalf,areexpresslyqualifiedintheirentiretybythecautionarystatementsdisclosedunder"Item1A.RiskFactors,"inourAnnualReportonForm10-KfortheyearendedDecember28,2019,assuchriskfactorsmaybeamended,supplementedorsupersededfromtimetotimebyotherreportswefilewiththeSEC,includingsubsequentAnnualReportsonForm10-KandQuarterlyReportsonForm10-Q,andinanyprospectussupplement.
Potentialinvestorsandotherreadersareurgedtoconsiderthesefactorscarefullyinevaluatingtheforward-lookingstatementsandarecautionednottoplaceunduerelianceonanyforward-lookingstatementswemake.Theseforward-lookingstatementsspeakonlyasofthedateonwhichtheyaremadeandarenotguaranteesoffutureperformanceordevelopmentsandinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatareinmanycasesbeyondourcontrol.Exceptasrequiredbylaw,weundertakenoobligationtoupdateorreviseanyforward-lookingstatementspublicly,whetherasaresultofnewinformation,futuredevelopmentsorotherwise.
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YETI HOLDINGS, INC.
Weareagrowingdesigner,marketer,retailer,anddistributorofavarietyofinnovative,branded,premiumproductstoawide-rangingcustomerbase.OurmissionistoensurethateachYETIproductdeliversexceptionalperformanceanddurabilityinanyenvironment,whetherintheremotewilderness,atthebeach,oranywhereelselifetakesourcustomers.Byconsistentlydeliveringhigh-performingproducts,wehavebuiltafollowingofengagedbrandloyaliststhroughouttheUnitedStates,Canada,Australia,Japan,andelsewhere,rangingfromseriousoutdoorenthusiaststoindividualswhosimplyvalueproductsofuncompromisingqualityanddesign.Ourrelationshipwithcustomerscontinuestothriveanddeepenasaresultofourinnovativenewproductintroductions,expansionandenhancementofexistingproductfamilies,andmultifacetedbrandingactivities.Foradditionalinformationaboutourbusiness,operationsandfinancialresults,seethedocumentslistedunder"IncorporationbyReference."
Ourprincipalexecutiveandadministrativeofficesarelocatedat7601SouthwestParkway,Austin,Texas78735.Ourtelephonenumberis(512)394-9384andourwebsiteiswww.YETI.com.Wemaypostinformationthatisimportanttoinvestorsonourwebsite.However,theinformationincludedorreferredtoon,orotherwiseaccessiblethrough,ourwebsiteisnotintendedtoformapartoforbeincorporatedbyreferenceintothisprospectus,anyaccompanyingprospectussupplementoranyfreewritingprospectus.
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RISK FACTORS
Investinginourcommonstockinvolvesahighdegreeofrisk.Beforemakinganinvestmentdecision,inadditiontotheotherinformationcontainedinthisprospectusandanyprospectussupplementorfreewritingprospectus,youshouldcarefullyconsideranyriskfactorssetforthintheapplicableprospectussupplementandthedocumentsincorporatedbyreferenceinthisprospectus,includingtheriskfactorsdiscussedundertheheading"RiskFactors"inourmostrecentAnnualReportonForm10-KandeachsubsequentlyfiledQuarterlyReportonForm10-QandanyriskfactorssetforthinourotherfilingswiththeSECpursuanttoSections13(a),13(c),14or15(d)oftheExchangeAct.See"WhereYouCanFindMoreInformation"and"IncorporationbyReference."Eachoftherisksdescribedinthesedocumentscouldmateriallyandadverselyaffectourbusiness,financialcondition,resultsofoperationsandprospects,andcouldresultinapartialorcompletelossofyourinvestment.Additionalrisksanduncertaintiesnotcurrentlyknowntous,orthatwecurrentlydeemimmaterial,mayalsoadverselyimpactourbusinessoperations.Inaddition,pastfinancialperformancemaynotbeareliableindicatoroffutureperformanceandhistoricaltrendsshouldnotbeusedtoanticipateresultsortrendsinfutureperiods.
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USE OF PROCEEDS
Wewillnotreceiveanyproceedsfromthesaleofsharesofourcommonstockbythesellingstockholders.Anyproceedsfromthesalebythesellingstockholdersofthesharesofcommonstockofferedbythisprospectuswillbereceivedbythesellingstockholders.Wehaveagreedtopaycertainexpensesinconnectionwiththeregistrationofthesharesofcommonstocktobesoldbythesellingstockholdersofferedbythisprospectus.Formoreinformation,see"SellingStockholders"and"CertainRelationshipsandRelatedPartyTransactionswiththeSellingStockholders."
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DESCRIPTION OF CAPITAL STOCK
General
Thefollowingdescriptionsummarizescertainimportanttermsofourcapitalstock.Thisdescriptionsummarizestheprovisionsthatareincludedinouramendedandrestatedcertificateofincorporationandamendedandrestatedbylaws.Becauseitisonlyasummary,itdoesnotcontainalltheinformationthatmaybeimportanttoyou.Foracompletedescriptionofthematterssetforthinthissection,youshouldrefertoouramendedandrestatedcertificateofincorporation,amendedandrestatedbylaws,theStockholdersAgreement,datedOctober24,2018,byandamongYETIHoldings,Inc.,CortecGroupFundV,L.P.anditsaffiliates,andcertainotherstockholdersnamedtherein(the"StockholdersAgreement")andtheRegistrationRightsAgreement,datedOctober24,2018,byandamongYETIHoldings,Inc.,CortecGroupFundV,L.P.andcertainotherstockholdersnamedtherein,asamendedbyAmendmentNo.1totheRegistrationRightsAgreement,datedMay6,2019,andAmendmentNo.2totheRegistrationRightsAgreement,datedDecember11,2019(collectively,the"RegistrationRightsAgreement"),whichareincorporatedbyreferenceasexhibitstotheregistrationstatementofwhichthisprospectusformsapart,andtotheapplicableprovisionsofDelawarelaw.
Authorized Capital Stock
Ourauthorizedcapitalstockconsistsof630,000,000sharesofcapitalstock,parvalue$0.01pershare,ofwhich:
• 600,000,000sharesaredesignatedascommonstock;and
• 30,000,000sharesaredesignatedaspreferredstock.
Outstanding Capital Stock
AsofFebruary7,2020,therewere86,786,443sharesofourcommonstockoutstanding,heldby29stockholdersofrecord,andnosharesofourpreferredstockoutstanding.OurBoardofDirectorsisauthorizedtoissueadditionalsharesofourcapitalstockwithoutstockholderapproval,exceptasrequiredbytheNYSElistingstandards.
Common Stock
Voting Rights.Theholdersofourcommonstockareentitledtoonevotepershareonanymattertobevoteduponbystockholders.Ourdirectorsareelectedbyapluralityofthevotescastbystockholdersentitledtovoteontheelection.Allothermatterstobevotedonbystockholdersmustbeapprovedbyamajorityinvotingpowerofthevotescastbytheholdersofallofthesharesofstockpresentorrepresentedatthemeetingandvotingaffirmativelyornegativelyonsuchmatter,exceptwhenadifferentvoteisrequiredbyexpressprovisionofapplicablelaw,regulationapplicabletousoroursecurities,therulesorregulationsofanystockexchangeapplicabletous,ouramendedandrestatedcertificateofincorporationorouramendedandrestatedbylaws.Ouramendedandrestatedcertificateofincorporationdoesnotprovideforcumulativevotinginconnectionwiththeelectionofdirectorsand,accordingly,holdersofmorethan50%ofthesharesvotingareabletoelectallofourdirectors,subjecttotherightsofCortecGroupFundV,L.P.anditsaffiliates("Cortec")toelectcertaindirectorsandselectcertainnomineesfordirectorsasdiscussedbelowunder"—StockholdersAgreement".Theholdersofamajorityofthesharesofcommonstockissuedandoutstandingconstituteaquorumatallmeetingsofstockholdersforthetransactionofbusiness.
Dividends.Theholdersofourcommonstockareentitledtodividendsif,as,andwhendeclaredbyourBoardofDirectors,fromfundslegallyavailabletherefor,subjecttocertaincontractuallimitationsonourabilitytodeclareandpaydividends.
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Other Rights.Noholderofourcommonstockhasanypreemptiverighttosubscribeforanysharesofourcapitalstock.
Uponanyvoluntaryorinvoluntaryliquidation,dissolution,orwindingupofouraffairs,theholdersofourcommonstockareentitledtoshareratablyinallassetsremainingafterpaymentofcreditorsandsubjecttopriordistributionrightsofourpreferredstock,ifany.
Preferred Stock
OurBoardofDirectorsisauthorized,subjecttolimitationsprescribedbyDelawarelaw,toissuepreferredstockinoneormoreseries,toestablishfromtimetotimethenumberofsharestobeincludedineachseries,andtofixthedesignation,powers,preferences,andrightsofthesharesofeachseriesandanyofitsqualifications,limitations,orrestrictions,ineachcasewithoutfurthervoteoractionbyourstockholders.OurBoardofDirectorscanalsoincreaseordecreasethenumberofsharesofanyseriesofpreferredstock,butnotbelowthenumberofsharesofthatseriesthenoutstanding,withoutanyfurthervoteoractionbyourstockholders.OurBoardofDirectorsmayauthorizetheissuanceofpreferredstockwithvotingorconversionrightsthatcouldadverselyaffectthevotingpowerorotherrightsoftheholdersofourcommonstock.Theissuanceofpreferredstock,whileprovidingflexibilityinconnectionwithpossibleacquisitionsandothercorporatepurposes,could,amongotherthings,havetheeffectofdelaying,deferring,orpreventingachangeinourcontrolandmightadverselyaffectthemarketpriceofourcommonstockandthevotingandotherrightsoftheholdersofourcommonstock.Wehavenocurrentplantoissueanysharesofpreferredstock.
Options
AsofFebruary7,2020,wehadoutstandingoptionstopurchaseanaggregateof1,610,907sharesofourcommonstock,withaweightedaverageexercisepriceofapproximately$16.50pershare,undertheYETIHoldings,Inc.2012EquityandPerformanceIncentivePlan,asamendedandrestatedJune20,2018(the"2012Plan")andtheYETIHoldings,Inc.2018EquityandIncentiveCompensationPlan(the"2018Plan").
InOctober2018,ourBoardofDirectorsadoptedthe2018Planandceasedgrantingawardsunderthe2012Plan.The2018Planbecameeffectivepriortocompletionofourinitialpublicofferingofourcommonstock("IPO"),withnewawardsbeingavailableforissuanceunderthe2018PlanasofthecompletionofourIPO.Anyremainingsharesavailableforissuanceunderthe2012PlanasofourIPOeffectivenessdatearenotavailableforfutureissuance.However,sharessubjecttostockawardsgrantedunderthe2012Plan(a)thatexpireorterminatewithoutbeingexercised,(b)thatareforfeitedunderanaward,or(c)thataretransferred,surrendered,orrelinquisheduponthepaymentofanyexercisepricebythetransfertousofourcommonstockoruponsatisfactionofanywithholdingamount,returntothe2018Plansharereserveforfuturegrant.
Stockholders Agreement
InconnectionwithourIPO,weenteredintotheStockholdersAgreementwithCortecManagementV,LLC,asmanaginggeneralpartnerofCortecGroupFundV,L.P.,andotherholdersofourcommonstockpartytheretopursuanttowhichwearerequiredtotakeallnecessaryactionforindividualsdesignatedbyCortectobeincludedintheslateofnomineesrecommendedbytheBoardofDirectorsforelectionbyourstockholders.UndertheStockholdersAgreement,Cortechastherighttonominate(i)threedirectorssolongasitbeneficiallyownsatleast30%ofourthen-outstandingsharesofcommonstock,(ii)twodirectorssolongasitbeneficiallyownsatleast15%butlessthan30%ofourthen-outstandingsharesofcommonstock,and(iii)onedirectorsolongasitbeneficiallyownsatleast10%butlessthan15%ofourthen-outstandingsharesofcommonstock(werefertoanydirectornominatedbyCortecasa"CortecDesignee").TheStockholdersAgreementalsoprovidesthatsolong
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asCortecbeneficiallyowns20%ormoreofourthen-outstandingsharesofcommonstock,wewillagreetotakeallnecessaryactiontocauseaCortecDesigneetoserveas(i)ChairoftheBoardofDirectorsand(ii)Chairofthenominatingandgovernancecommittee.
Registration Rights
InconnectionwithourIPO,weenteredintotheRegistrationRightsAgreementwithCortec,RoyJ.Seiders,RyanR.Seiders,certainoftheirrespectiveaffiliates,andcertainotherstockholders,whichwassubsequentlyamendedinMay2019andDecember2019.UnderthetermsoftheRegistrationRightsAgreement,anyofCortecGroupFundV,L.P.,CortecCo-InvestmentFundV,LLC,RoyJ.Seiders,RyanR.Seiders,RRSIce2,LPorRJSIce2,LPmaydemandregistrationof,oranunderwrittenofferingof,alloraportionofsuchholder'scommonstock.Ifsuchholderdemandsregistrationoranunderwrittenoffering,theotherpartiestotheRegistrationRightsAgreementmayrequestthatuptoalloftheirsharesofcommonstockbeincludedinsuchregistrationstatementorunderwrittenoffering,asthecasemaybe.Ineachcase,theamountregisteredunderthedemandregistrationorofferedinanunderwrittenofferingissubjecttocertainlimitationsandconditions,includingthat(i)wearenotobligatedtoeffectuatemorethanfourdemandregistrationsorunderwrittenofferingsinany12-monthperiodand(ii)anydemandregistrationorunderwrittenofferingmustbeforananticipatedaggregateofferingpriceofatleast$250million.Inaddition,intheeventthatweregisteradditionalsharesofcommonstockoranyseriesofpreferredstockforsaletothepublic,wewillberequiredtogivenoticeofsuchregistrationtotheotherpartiestotheRegistrationRightsAgreementand,subjecttocertainlimitations,includesharesofcommonstockheldbythemintheregistration.Weareresponsibleforpayingallregistrationexpensesandexpensesassociatedwithanunderwrittenofferinginconnectionwithanyregistrationorunderwrittenofferingpursuanttotheregistrationrightsagreement(includingthecostsassociatedwiththisregistration),excludinganyunderwritingfees,commissions,discountsandallowancesandrelatedlegalfees.TheRegistrationRightsAgreementincludescustomaryindemnificationprovisionsinfavorofthestockholderspartytheretoagainstcertainlossesandliabilitiesarisingoutoforbaseduponanyfilingorotherdisclosuremadebyusunderthesecuritieslawsrelatingtoanysuchregistration.
Anti-takeover Effects of Certain Provisions of our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws
Provisionsofouramendedandrestatedcertificateofincorporationandamendedandrestatedbylawsmaydelayordiscouragetransactionsinvolvinganactualorpotentialchangeinourcontrolorchangeinourmanagement,includingtransactionsinwhichstockholdersmightotherwisereceiveapremiumfortheirshares,ortransactionsthatourstockholdersmightotherwisedeemtobeintheirbestinterests.Therefore,theseprovisionscouldadverselyaffectthepriceofourcommonstock.Amongotherthings,ouramendedandrestatedcertificateofincorporationandamendedandrestatedbylaws:
• providethatourBoardofDirectorsisclassifiedintothreeclassesofdirectors;
• prohibitstockholdersfromtakingactionbywrittenconsent;
• providethatstockholdersmayremovedirectorsonlyforcause,andonlywiththeapprovalofholdersofatleast662/3%ofourthenoutstandingcapitalstock;
• providethattheauthorizednumberofdirectorsmaybechangedonlybyresolutionofourBoardofDirectors;
• providethatallvacancies,includingnewlycreateddirectorships,may,exceptasotherwiserequiredbylaworassetforthintheStockholdersAgreement,befilledbytheaffirmativevoteofamajorityofdirectorstheninoffice,eveniflessthanaquorum;
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• providethatstockholdersseekingtopresentproposalsbeforeameetingofstockholdersortonominatecandidatesforelectionasdirectorsatameetingofstockholdersmustprovidenoticeinwritinginatimelymanner,andalsospecifyrequirementsastotheformandcontentofastockholder'snotice;
• restricttheforumforcertainlitigationagainstustoDelaware;
• donotprovideforcumulativevotingrights(thereforeallowingtheholdersofamajorityofthesharesofcommonstockentitledtovoteinanyelectionofdirectorstoelectallofthedirectorsstandingforelection,subjecttotherightsofCortectoelectcertaindirectorsandselectcertainnomineesfordirectorsasdiscussedaboveunder"—StockholdersAgreement");
• providethatspecialmeetingsofourstockholdersmaybecalledonlybytheChairofourBoardofDirectors,ourChiefExecutiveOfficerortheBoardofDirectorspursuanttoaresolutionadoptedbyamajorityofthetotalnumberofauthorizeddirectors;
• providethatstockholderswillbepermittedtoamendouramendedandrestatedbylawsonlyuponreceivingatleast662/3%ofthevotesentitledtobecastbyholdersofalloutstandingsharesthenentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass;and
• providethatcertainprovisionsofouramendedandrestatedcertificateofincorporationmayonlybeamendeduponreceivingatleast662/3%ofthevotesentitledtobecastbyholdersofalloutstandingsharesthenentitledtovote,votingtogetherasasingleclass.
Further,wehaveoptedoutofSection203oftheGeneralCorporationLawoftheStateofDelaware(the"DGCL").However,ouramendedandrestatedcertificateofincorporationcontainssimilarprovisionsprovidingthatwemaynotengageincertain"businesscombinations"withany"interestedstockholder"forathree-yearperiodfollowingthetimethatthestockholderbecameaninterestedstockholder,unless:
• priortosuchtime,ourBoardofDirectorsapprovedeitherthebusinesscombinationorthetransactionwhichresultedinthestockholderbecominganinterestedstockholder;
• uponconsummationofthetransactionthatresultedinthestockholderbecominganinterestedstockholder,theinterestedstockholderownedatleast85%ofourvotingstockoutstandingatthetimethetransactioncommenced,excludingcertainshares;or
• atorsubsequenttothattime,thebusinesscombinationisapprovedbyourBoardofDirectorsandbytheaffirmativevoteofholdersofatleast662/3%ofouroutstandingvotingstockthatisnotownedbytheinterestedstockholder.
Generally,a"businesscombination"includesamerger,asset,orstocksaleorothertransactionresultinginafinancialbenefittotheinterestedstockholder.Subjecttocertainexceptions,an"interestedstockholder"isapersonwho,togetherwiththatperson'saffiliatesandassociates,owns,orwithinthepreviousthreeyearsowned,15%ormoreofouroutstandingvotingstock.Forpurposesofthissectiononly,"votingstock"hasthemeaninggiventoitinSection203oftheDGCL.
Undercertaincircumstances,thisprovisionwillmakeitmoredifficultforapersonwhowouldbean"interestedstockholder"toeffectvariousbusinesscombinationswiththeCompanyforathree-yearperiod.ThisprovisionmayencouragecompaniesinterestedinacquiringtheCompanytonegotiateinadvancewithourBoardofDirectorsbecausethestockholderapprovalrequirementwouldbeavoidedifourBoardofDirectorsapproveseitherthebusinesscombinationorthetransactionwhichresultsinthestockholderbecominganinterestedstockholder.TheseprovisionsalsomayhavetheeffectofpreventingchangesinourBoardofDirectorsandmaymakeitmoredifficulttoaccomplishtransactionswhichstockholdersmayotherwisedeemtobeintheirbestinterests.
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OuramendedandrestatedcertificateofincorporationprovidesthatCortecanditsaffiliatesandanyoftheirdirectorindirecttransfereesandanygroupastowhichsuchpersonsareaparty,donotconstitute"interestedstockholders"forpurposesofthisprovision.
Choice of Forum
Unlessweconsenttotheselectionofanalternativeforum,theCourtofChanceryoftheStateofDelawareis,tothefullestextentpermittedbylaw,thesoleandexclusiveforumfor(i)anyderivativeactionorproceedingbroughtonourbehalf,(ii)anyactionassertingaclaimofbreachoffiduciarydutyowedbyanyofourcurrentorformerstockholders,directors,officers,orotheremployeestousortoourstockholders,(iii)anyactionassertingaclaimagainstusarisingpursuanttotheDGCL,or(iv)anyactionassertingaclaimagainstusthatisgovernedbytheinternalaffairsdoctrine.ThechoiceofforumprovisiondoesnotapplytoanyactionsarisingundertheSecuritiesActortheExchangeAct.
Transfer Agent and Registrar
ThetransferagentandregistrarforourcommonstockisBroadridgeCorporateIssuerSolutions,Inc.
Listing
OurcommonstockislistedontheNYSEunderthesymbol"YETI."
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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS WITH SELLING STOCKHOLDERS
Stockholders Agreement
InconnectionwithourIPO,weenteredintotheStockholdersAgreementwithCortecManagementV,LLC,asmanaginggeneralpartnerofCortecGroupFundV,L.P.,andotherholdersofourcommonstockpartytheretopursuanttowhichwearerequiredtotakeallnecessaryactionforindividualsdesignatedbyCortectobeincludedintheslateofnomineesrecommendedbytheBoardofDirectorsforelectionbyourstockholders.UndertheStockholdersAgreement,Cortechastherighttonominate(i)threedirectorssolongasitbeneficiallyownsatleast30%ofourthen-outstandingsharesofcommonstock,(ii)twodirectorssolongasitbeneficiallyownsatleast15%butlessthan30%ofourthen-outstandingsharesofcommonstock,and(iii)onedirectorsolongasitbeneficiallyownsatleast10%butlessthan15%ofourthen-outstandingsharesofcommonstock(werefertoanydirectornominatedbyCortecasa"CortecDesignee").TheStockholdersAgreementalsoprovidesthatsolongasCortecbeneficiallyowns20%ormoreofourthen-outstandingsharesofcommonstock,wewillagreetotakeallnecessaryactiontocauseaCortecDesigneetoserveas(i)ChairoftheBoardofDirectorsand(ii)Chairofthenominatingandgovernancecommittee.
Registration Rights Agreement
InconnectionwithourIPO,weenteredintotheRegistrationRightsAgreementwithCortec,RoyJ.Seiders,RyanR.Seiders,certainoftheirrespectiveaffiliates,andcertainotherstockholders,whichwassubsequentlyamendedinMay2019andDecember2019.UnderthetermsoftheRegistrationRightsAgreement,anyofCortecGroupFundV,L.P.,CortecCo-InvestmentFundV,LLC,RoyJ.Seiders,RyanR.Seiders,RRSIce2,LPorRJSIce2,LPmaydemandregistrationof,oranunderwrittenofferingof,alloraportionofsuchholder'scommonstock.Ifsuchholderdemandsregistrationoranunderwrittenoffering,theotherpartiestotheRegistrationRightsAgreementmayrequestthatuptoalloftheirsharesofcommonstockbeincludedinsuchregistrationstatementorunderwrittenoffering,asthecasemaybe.Ineachcase,theamountregisteredunderthedemandregistrationorofferedinanunderwrittenofferingissubjecttocertainlimitationsandconditions,includingthat(i)wearenotobligatedtoeffectuatemorethanfourdemandregistrationsorunderwrittenofferingsinany12-monthperiodand(ii)anydemandregistrationorunderwrittenofferingmustbeforananticipatedaggregateofferingpriceofatleast$250million.Inaddition,intheeventthatweregisteradditionalsharesofcommonstockoranyseriesofpreferredstockforsaletothepublic,wewillberequiredtogivenoticeofsuchregistrationtotheotherpartiestotheRegistrationRightsAgreementand,subjecttocertainlimitations,includesharesofcommonstockheldbythemintheregistration.Weareresponsibleforpayingallregistrationexpensesandexpensesassociatedwithanunderwrittenofferinginconnectionwithanyregistrationorunderwrittenofferingpursuanttotheregistrationrightsagreement(includingthecostsassociatedwiththisregistration),excludinganyunderwritingfees,commissions,discountsandallowancesandrelatedlegalfees.TheRegistrationRightsAgreementincludescustomaryindemnificationprovisionsinfavorofthestockholderspartytheretoagainstcertainlossesandliabilitiesarisingoutoforbaseduponanyfilingorotherdisclosuremadebyusunderthesecuritieslawsrelatingtoanysuchregistration.
Letter Agreements, Waivers and Amendments to Registration Rights Agreement
OnMay6,2019,weenteredintoaletteragreement(the"May2019LetterAgreement")withJohnD.Bullock,Jr.,AndrewS.Hollon,CortecGroupFundV,L.P.,CortecCo-InvestmentFundV,LLC,CortecGroupFundV(Parallel),L.P.,RJSICE,LP,RJSICE2,LP,RRSICE2,LP,RoyJ.SeidersandRyanR.Seiders(collectively,the"MajorityStockholders").PursuanttotheMay2019LetterAgreement,inexchangefortheirallocatedsalesinoursecondaryofferingof10,925,000sharesofcommonstocksoldbysellingstockholders,completedonMay8,2019(the"May2019
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Offering"),Messrs.BullockandHollonagreedtoenterinto(i)anamendmenttotheRegistrationRightsAgreement,pursuanttowhichMessrs.BullockandHollonwillbedeemedtoholdnoregistrablesharesundertheRegistrationRightsAgreementatsuchtimeastheyhold150,000and300,000registrableshares,respectively,and(ii)awaivertotheRegistrationRightsAgreementtofacilitatethesellingstockholderallocationsintheMay2019Offering(the"May2019Waiver"),pursuanttowhichYETIHoldings,Inc.andtheMajorityStockholdersagreedtousetheircommerciallyreasonableeffortstoeffecttheMay2019Offering,subjecttomarketconditionsandcertainothercontingenciesandconsiderations,andeachpartyagreedthatthenumberofsharesofcommonstocktobeincludedintheMay2019OfferingwastobeallocatedaccordingtothetermsoftheMay2019Waiver.Inaddition,eachofMessrs.BullockandHollonadoptedtradingplansestablishedunderRule10b5-1oftheExchangeAct,pursuanttowhichtheywouldeachsell,subjecttothetermsofsuchtradingplans,asignificantportionoftheirremainingsharesofcommonstockcommencingfollowingtheexpirationofthelock-upagreementstheyenteredintoinconnectionwiththeMay2019Offering.SuchtradingplanswereadoptedbyeachofMessrs.BullockandHolloninthesecondquarterof2019,andallsharesincludedinsuchtradingplanshavenowbeensold.Inaddition,asofSeptember4,2019,Messrs.BullockandHollonheldlessthan150,000and300,000registrableshares,respectively,and,accordinglyweredeemedtoholdnoregistrablesharesundertheRegistrationRightsAgreement.
OnNovember4,2019,weandcertainpartiestotheRegistrationRightsAgreemententeredintoawaivertotheRegistrationRightsAgreementtofacilitatethesellingstockholderallocationsinoursecondaryofferingof11,500,000sharesofcommonstocksoldbysellingstockholders,completedonNovember12,2019(the"November2019Offering"),andwaivedtherequirementtoenterintolock-upagreementsforcertainpartiestotheRegistrationRightsAgreementthatdidnotparticipateintheNovember2019Offering.Inaddition,onDecember11,2019,weandcertainpartiestotheRegistrationRightsAgreemententeredintoaletteragreementandanamendmenttotheRegistrationRightsAgreement,pursuanttowhich(i)OaktreeSpecialtyLendingCorporation("Oaktree"),ChristopherS.Conroy,theChristopherS.ConroyIrrevocableSpousalTrustandStevenW.HoogendoornweredeemedtoholdnoregistrablesharesundertheRegistrationRightsAgreementasofDecember11,2019and(ii)inexchange,OaktreeagreedtoadoptandimplementatradingplanestablishedunderRule10b5-1oftheExchangeAct,pursuanttowhichitwouldsell,subjecttothetermsofsuchtradingplan,itsremainingsharesofcommonstockcommencingfollowingtheexpirationofthelock-upagreementitenteredintoinconnectionwithNovember2019Offering.Oaktreeadoptedsuchtradingplanandallsharesincludedinsuchtradingplanhavenowbeensold.
Other Related-Party Transactions
RoyJ.Seidersservesinanon-executivecapacityasChairmanandFounderofYETICoolers,LLCpursuanttoanemploymentagreementdatedSeptember14,2015.TotalcashpaymentsmadebyustoMr.Seiders,includingsalary,bonus,anddividendsinrespectofvestedoptions,wereapproximately$54,000forsuchserviceduring2019,$0.7million2018and$1.0millionfor2017.
RyanR.Seiders,whocurrentlyservesasaCo-FounderofYETICoolers,LLCpursuanttoanemploymentagreementdatedSeptember14,2015,isthebrotherofRoyJ.Seiders.TotalcashpaymentsmadebyustoMr.Seiders,includingsalary,bonus,anddividendsinrespectofvestedoptions,wereapproximately$51,000for2019,$0.7millionfor2018and$0.7millionfor2017.
In2012,weenteredintoamanagementservicesagreementwithCortecthatprovidedforamanagementfeebasedon1.0%oftotalsales,nottoexceed$750,000annually,pluscertainout-of-pocketexpenses.EachofMessrs.Lipsitz,Najjar,andSchnadigareManagingPartnersofCortec.Duringeachof2018and2017,weincurredfeesandout-of-pocketexpensesunderthisagreementof$0.8million.ThisagreementwasterminatedinconnectionwithourIPOandnofurtherpaymentsareduetoCortec.
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InMarch2016,theunvestedstockoptionsoutstandingunderthe2012Plan,includingthoseheldbyMessrs.Reintjes,Shields,andBarksdale,weremodifiedtoconvertperformance-basedoptionstotime-basedoptionsandtochangethevestingperiodfortime-basedoptions.
UndertherevisedtermsofRoySeiders'optionagreement,theoptionsaresubjectsolelytotime-vestingrestrictionsasfollows:(i)138,156oftheoptionsvestedonJuly31,2017and(ii)theremaining138,950optionsvestedonJuly31,2018.
UndertherevisedtermsofRyanSeiders'optionagreement,theoptionsaresubjectsolelytotime-vestingrestrictionsasfollows:(i)135,774oftheoptionsvestedonJuly31,2017and(ii)theremaining135,774optionsvestedonJuly31,2018.
WeleasewarehousespaceinAustin,Texas,fromHidalgoIce,LP,anentityownedbyRoySeidersandRyanSeiders.Theleaseismonthtomonth,canbecancelledupon30days'writtennoticeandrequiresmonthlypaymentsof$8,700.Totalcashpaymentsmadebyustothisentityundertheleaseagreementwere$0.1millionforeachof2019,2018and2017.
Indemnification of Directors and Officers
OurrestatedcertificateofincorporationandamendedandrestatedbylawsprovidethatourdirectorsandofficerswillbeindemnifiedbyustothefullestextentauthorizedbyDelawarelawasitcurrentlyexistsormayinthefuturebeamended,againstallexpensesandliabilitiesreasonablyincurredinconnectionwiththeirservicefororonourbehalf.Inaddition,ourrestatedcertificateofincorporationprovidesthatourdirectorswillnotbepersonallyliableformonetarydamagestousorourstockholdersforbreachesoftheirfiduciarydutyasdirectors.
Inadditiontotheindemnificationprovidedbyourrestatedcertificateofincorporationandamendedandrestatedbylaws,wehaveenteredintoagreementstoindemnifyourdirectors,executiveofficersandcertainotherofficersandagents.Theseagreements,amongotherthingsandsubjecttocertainstandardstobemet,requireustoindemnifythesedirectors,officersandagentsforcertainexpenses,includingattorneys'andexperts'fees,judgments,fines,penaltiesandsettlementamountsincurredbyanysuchpersoninanyactionorproceeding,includinganyactionbyorinourright,arisingoutofthatperson'sservicesasadirector,officeroragentofusoranyofoursubsidiariesoranyothercompanyorenterprisetowhichthepersonprovidesservicesatourrequest.Theseagreementsalsorequireustoadvanceexpensestotheseofficersanddirectorsforinvestigating,defending,beingawitnessinorparticipatingin,orpreparingtoinvestigate,defend,beawitnessorparticipatein,anysuchactionorproceeding,subjecttoanundertakingtorepaysuchamountsifitisultimatelydeterminedthatsuchdirector,officeroragentwasnotentitledtobeindemnifiedforsuchexpenses.
Wemaintain,atourexpense,aninsurancepolicythatinsuresourofficersanddirectors,subjecttocustomaryexclusionsanddeductions,againstlossarisingfromclaimsmadeforbreachoffiduciarydutyorotherwrongfulactsasadirectororexecutiveofficerandtouswithrespecttopaymentsthatmaybemadebyustothesedirectorsandexecutiveofficerspursuanttoourindemnificationobligationsorotherwiseasamatteroflaw.Wehavealsoenteredintoadditionalandenhancedinsurancearrangementstoprovidecoveragetoourdirectorsandexecutiveofficersagainstlossarisingfromclaimsrelatingtopublicsecuritiesmatters.
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SELLING STOCKHOLDERS
Thesellingstockholdersnamedbelowmayoffer,fromtimetotimeinoneormoreofferings,uptoanaggregateof17,250,000sharesofourcommonstock,subjecttoadjustmentsforstocksplits,stockdividendsandreclassifications.Thefollowingtablesetsforththenamesofthesellingstockholders(and/orthebeneficialowners)andthenumberofsharesofcommonstockheldbyeachofthemasofFebruary7,2020.
Informationinthetablebelowwithrespecttobeneficialownershiphasbeenfurnishedbyeachofthesellingstockholders.Thesharesarebeingregisteredtopermitpublicsecondarytradingoftheshares,andsellingstockholdersmayofferthesharesforresalefromtimetotimeinoneormoreofferings.BeneficialownershipisdeterminedinaccordancewiththerulesandregulationsoftheSEC.Theserulesgenerallyprovidethatapersonisthebeneficialownerofsecuritiesiftheyhaveorsharethepowertovoteordirectthevotingthereof,ortodisposeordirectthedispositionthereof,orhavetherighttoacquiresuchpowerswithin60days.Incomputingthepercentageownershipofaperson,sharesofourcommonstocksubjecttotheoptionsheldbythatpersonaredeemedtobeoutstandingiftheyareexercisablewithin60daysofFebruary7,2020.Thesharessubjecttooptionsarenotdeemedtobeoutstandingforthepurposeofcomputingthepercentageownershipofanyotherperson.Allpercentagesinthefollowingtablesarebasedonatotalof86,786,443sharesofourcommonstockoutstandingasofFebruary7,2020.
Thesellingstockholderslistedinthetablebelowmayhavesold,transferred,otherwisedisposedoforpurchased,ormaysell,transfer,otherwisedisposeoforpurchase,atanytimeandfromtimetotime,sharesofourcommonstockintransactionsexemptfromtheregistrationrequirementsoftheSecuritiesActorintheopenmarketafterthedateonwhichtheyprovidedtheinformationsetforthinthetablebelow.Wedonotknowwhich(ifany)ofthesellingstockholdersnamedbelowactuallywilloffertosellsharespursuanttothisprospectus,orthenumberofsharesthateachofthemwilloffer.
Anyaffiliateofabroker-dealerwillbedeemedtobean"underwriter"withinthemeaningofSection2(a)(11)oftheSecuritiesAct,unlesssuchsellingstockholderpurchasedintheordinarycourseofbusinessand,atthetimeofitspurchaseofthestock,didnothaveanyagreementsorunderstandings,directlyorindirectly,withanypersontodistributethestock.Asaresult,anyprofitsonthesaleofthecommonstockbysellingstockholderswhoaredeemedtobe"underwriter"andanydiscounts,commissionsorconcessionsreceivedbyanysuchbroker-dealerswhoaredeemedtobe"underwriters"willbedeemedtobeunderwritingdiscountsandcommissionsundertheSecuritiesAct.Sellingstockholderswhoaredeemedtobe"underwriters"willbesubjecttotheprospectusdeliveryrequirementsoftheSecuritiesActandtocertainstatutoryliabilities,including,butnotlimitedto,thoseunderSections11,12and17oftheSecuritiesActandRule10b-5undertheExchangeAct.
Informationaboutadditionalsellingstockholders,ifany,includingtheiridentitiesandthecommonstocktoberegisteredontheirbehalf,willbesetforthinaprospectussupplement,inapost-effectiveamendmentorinfilingsthatwemakewiththeSECundertheExchangeAct,whichareincorporatedbyreferenceinthisprospectus.Informationconcerningthesellingstockholdersmaychangefromtimetotime.Anychangestotheinformationprovidedbelowwillbesetforthinasupplementtothisprospectus,inapost-effectiveamendmentorinfilingswemakewiththeSECundertheExchangeAct,whichareincorporatedbyreferenceintothisprospectusifandwhennecessary.
Unlessotherwiseindicatedandsubjecttoapplicablecommunitypropertylaws,toourknowledge,eachsellingstockholdernamedinthefollowingtablepossessessolevotingandinvestmentpowerover
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theshareslisted.Unlessotherwisenotedbelow,theaddressofeachsellingstockholderlistedinthetableisc/oYETIHoldings,Inc.,7601SouthwestParkway,Austin,Texas78735.
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Beneficial Ownership Before
Resale
Beneficial Ownership After
Resale(1) Common Stock Common Stock
Name of selling stockholder Number of
Shares %
Number of shares offered
Number of Shares %
Cortec(2) 29,647,527 34.2% 12,971,919(8) 16,675,608 19.2%RJSIce2,LP(3) 6,544,465 7.5% 1,313,703 5,230,762 6.0%RRSIce2,LP(4) 5,103,673 5.9% 2,233,050 2,870,623 3.3%YHICGGroupInvestors,LLC(5) 1,671,460 1.9% 731,328 940,132 1.1%JohnT.Miner(6) 3,342 * 1,463 1,879 *AllisonS.Klazkin(7) 4,179 * 1,829 2,350 *
* Lessthan1.0%.
(1) Assumesthateachnamedsellingstockholdersellsallofthesharesofourcommonstockitisofferingforsaleunderthisprospectusandneitheracquiresnordisposesofanyothershares,orrightstopurchaseothersharesofourcommonstock,subsequenttothedateasofwhichweobtainedinformationregardingitsholdings.Becausethesellingstockholdersarenotobligatedtosellalloranyportionofthesharesofourcommonstockshownasofferedbythem,wecannotestimatetheactualnumberofshares(ortheactualpercentageoftheclass)ofourcommonstockthatwillbeheldbyanysellingstockholderuponcompletionoftheoffering.Weareregisteringtheofferandsaleofthesharesofcommonstockbythesellingstockholderstosatisfyregistrationrightswegrantedtothesellingstockholders.See"CertainRelationshipsandRelatedPartyTransactionswithSellingStockholders—RegistrationRightsAgreement."
(2) Includes(i)27,339,731sharesofcommonstockheldbyCortecGroupFundV,L.P,(ii)628,815sharesofcommonstockheldbyCortecCo-InvestmentFundV,LLC,(iii)1,671,460sharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,(iv)3,342sharesofcommonstockheldbyJohnT.Miner,and(v)4,179sharesofcommonstockheldbyAllisonS.Klazkin.
CortecManagementV,LLCisthemanaginggeneralpartnerofCortecGroupFundV,L.P.CortecGroupGP,LLCisthemanagerofCortecManagementV,LLCandCortecCo-InvestmentFundV,LLC.ThemannerinwhichtheinvestmentsofCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLCareheld,includingsharesofcommonstock,andanydecisionsconcerningtheirultimatevotinganddisposition,aresubjecttothecontrolofCortecGroupGP,LLC,asmanagerofCortecManagementV,LLCandCortecCo-InvestmentFundV,LLC.ThemanagersofCortecGroupGP,LLCcurrentlyconsistofDavidL.Schnadig,JeffreyA.Lipsitz,MichaelE.Najjar,JeffreyR.ShannonandJonathanA.Stein.Avoteofsuchmanagersholdingatleast662/3%ofCortecGroupGP,LLCisrequiredtoapproveactionsonbehalfofCortecGroupGP,LLCwithrespecttosharesofcommonstockheldbyCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLC.Asaresult,noneofthemanagersofCortecGroupGP,LLChasdirectorindirectvotingordispositivepowerwithrespecttosuchsharesofcommonstockheldbyCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLC.
CortecManagementV(Co-Invest),LLCisthegeneralpartnerofCortecGroupFundV(Parallel),L.P.ThemannerinwhichtheinvestmentsofCortecGroupFundV(Parallel),L.P.areheld,includingsharesofcommonstock,andanydecisionsconcerningtheirultimatevotinganddisposition,aresubjecttothecontrolofCortecManagementV(Co-Invest),LLC.ThemanagersofCortecManagementV(Co-Invest),LLCcurrentlyconsistofDavidL.Schnadig,JeffreyA.Lipsitz,R.ScottSchaflerandMichaelE.Najjar.Amajorityvoteofsuchmanagersisrequiredto
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approveactionswithrespecttosharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.Asaresult,noneofthemanagersofCortecManagementV(Co-Invest),LLChasdirectorindirectvotingordispositivepowerwithrespecttosuchsharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.
AsCortecGroupFundV(Parallel),L.P.isrequiredbythetermsofitslimitedpartnershipagreementtodisposeofitsequityinvestmentsinthesamemannerandatthesametimeasCortecGroupFundV,L.P.andCortecCo-InvestmentFundV,LLC,JohnT.MinerandAllisonS.KlazkinmayonlydisposeoftheirrespectiveequityinvestmentsinthesamemannerandatthesametimeasCortecGroupFundV,L.P.,CortecManagementV,LLC,asmanaginggeneralpartnerofCortecGroupFundV,L.P.mayalsobedeemedtohavebeneficialownershipoverthesharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,CortecCo-InvestmentFundV,LLC,JohnT.MinerandAllisonS.Klazkin.CortecGroupGP,LLC,asmanagerofCortecManagementV,LLCmayalsobedeemedtohavebeneficialownershipoverthesharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,JohnT.MinerandAllisonS.Klazkin.Avoteofsuchmanagersholdingatleast662/3%ofCortecGroupGP,LLCisrequiredtoapproveactionsonbehalfofCortecGroupGP,LLCwithrespecttosharesofcommonstockheldbyCortecGroupFundV,L.P.Asaresult,noneofthemanagersofCortecGroupGP,LLChasdirectorindirectvotingordispositivepowerwithrespecttosharesofcommonstockheldbyCortecGroupFundV(Parallel),L.P.,JohnT.MinerandAllisonS.Klazkin.
EachofthemanagersofCortecGroupGP,LLCandCortecManagementV(Co-Invest),LLCdisclaimsbeneficialownershipofthesharesofcommonstockbeneficiallyownedbysuchentities.EachofthemanagersofCortecGroupGP,LLC,CortecGroupGP,LLCandCortecManagementV,LLCdisclaimsbeneficialownershipofthesharesofcommonstockheldbyJohnT.MinerandAllisonS.Klazkin.
TheaddressofCortecGroupFundV,L.P.,CortecCo-InvestmentFundV,LLC,CortecGroupFundV(Parallel),L.P.,CortecManagementV,LLC,CortecGroupGP,LLC,andCortecManagementV(Co-Invest),LLCis140East45thStreet,43rdFloor,NewYork,NewYork10017.
(3) Represents6,544,465sharesofcommonstockheldbyRJSIce2,LP.RoyJ.SeidersisthemanagerofRJSICEManagement,LLC,thegeneralpartnerofRJSIce2,LP,andmaybedeemedtobeneficiallyownthesharesofcommonstockheldbyRJSIce2,LP.TheaddressofRJSICEManagement,LLCisP.O.Box163325,Austin,Texas78716.
(4) Includes5,103,673sharesofcommonstockheldbyRRSIce2,LP.RyanR.SeidersisthemanagerofRRSICEManagement,LLC,thegeneralpartnerofRRSIce2,LP,andmaybedeemedtobeneficiallyownthesharesofcommonstockheldbyRRSIce2,LP.TheaddressofRRSICEManagement,LLCisP.O.Box163325,Austin,Texas78716.
(5) RDVCorporationisthemanagerofYHICGGroupInvestors,LLC.RobertH.Schierbeek,thechiefexecutiveofficerofRDVCorporation,hasdirectvotinganddispositivepowerwithrespecttothesharesofcommonstockheldbyYHICGGroupInvestors,LLC.TheaddressofYHICGGroupInvestors,LLCis126OttawaAvenueNW,Suite500,GrandRapids,Michigan49503.
(6) TheaddressofJohnT.Mineris140East45thStreet,43rdFloor,NewYork,NewYork10017.
(7) TheaddressofAllisonS.Klazkinis140East45thStreet,43rdFloor,NewYork,NewYork10017.
(8) IncludessharesofcommonstockofferedbyJohnT.MinerandAllisonS.Klazkin.
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PLAN OF DISTRIBUTION
General
Thesellingstockholdersmaysellsomeorallofthesharesofcommonstockthattheyhold,fromtimetotimeinoneormoreofferings,byavarietyofmethods,includingthefollowing:
• onanynationalsecuritiesexchangeorquotationserviceonwhichourcommonstockmaybelistedatthetimeofsale,includingtheNYSE;
• intheover-the-countermarket;
• intransactionsotherwisethanonsuchexchangeorintheover-the-countermarket,whichmayincludeprivatelynegotiatedtransactionsandsalesdirectlytooneormorepurchasers;
• throughordinarybrokeragetransactionsandtransactionsinwhichthebroker-dealersolicitspurchasers;
• throughpurchasesbyabroker-dealerasprincipalandresalebythebroker-dealerforitsaccount;
• throughunderwriters,broker-dealers,agents,inprivatelynegotiatedtransactions,oranycombinationofthesemethods;
• throughshortsales;
• throughthewritingorsettlementofoptionsorotherhedgingtransactions,whetherthroughanoptionsexchangeorotherwise;
• bypledgetosecuredebtsorotherobligations;
• acombinationofanyofthesemethods;or
• byanyothermethodpermittedpursuanttoapplicablelaw.
Asusedinthisprospectus,"sellingstockholders"includestransferees,pledgees,donees,assigneesorsuccessorssellingsharesreceivedafterthedateofthisprospectusfromasellingstockholderasagift,pledge,partnershipdistributionorothernon-salerelatedtransfer.
Wewillnotreceiveanyproceedsfromthesaleofsharesofourcommonstockthatmaybesoldfromtimetotimepursuanttothisprospectusbythesellingstockholders.Wewillbearcertaincostsassociatedwiththisregistrationinaccordancewiththeregistrationrightsagreement.However,thesellingstockholderswillbearanybrokeragecommissions,transfertaxes,orunderwritingcommissionsanddiscountsattributabletotheirsaleofsharesofourcommonstock.
Thecommonstockmaybedistributedbythesellingstockholdersfromtimetotimeinoneormoretransactions:
• atafixedpriceorprices,whichmaybechanged;
• atmarketpricesprevailingatthetimeofsale;
• atpricesrelatedtosuchprevailingmarketprices;
• atvaryingpricesdeterminedatthetimeofsale;or
• atnegotiatedprices.
Offerstopurchasethecommonstockbeingofferedbythisprospectusmaybesoliciteddirectly.Agentsmayalsobedesignatedtosolicitofferstopurchasethecommonstockfromtimetotime.Anyagentinvolvedintheofferorsaleofourcommonstockwillbeidentifiedinaprospectussupplement.
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Ifadealerisutilizedinthesaleofthecommonstockbeingofferedbythisprospectus,thecommonstockwillbesoldtothedealer,asprincipal.Thedealermaythenresellthecommonstocktothepublicatvaryingpricestobedeterminedbythedealeratthetimeofresale.
Ifanunderwriterisutilizedinthesaleofthecommonstockbeingofferedbythisprospectus,anunderwritingagreementwillbeexecutedwiththeunderwriteratthetimeofsaleandthenameofanyunderwriterwillbeprovidedintheprospectussupplementthattheunderwriterwillusetomakeresalesofthecommonstocktothepublic.Inconnectionwiththesaleofthecommonstock,thesellingstockholders,orthepurchasersofcommonstockforwhomtheunderwritermayactasagent,maycompensatetheunderwriterintheformofunderwritingdiscountsorcommissions.Theunderwritermaysellthecommonstocktoorthroughdealers,andthosedealersmayreceivecompensationintheformofdiscounts,concessionsorcommissionsfromtheunderwritersand/orcommissionsfromthepurchasersforwhichtheymayactasagent.Unlessotherwiseindicatedinaprospectussupplement,anagentwillbeactingonabesteffortsbasisandadealerwillpurchasecommonstockasaprincipal,andmaythenresellthecommonstockatvaryingpricestobedeterminedbythedealer.
Thesellingstockholderswhoparticipateinthesaleordistributionofthesharesofcommonstockofferedbythesellingstockholdersandanybroker-dealersoragentswhoparticipateinthedistributionofcommonstockofferedbythisprospectusmaybedeemedtobe"underwriters"withinthemeaningoftheSecuritiesAct.Anysellingstockholdersidentifiedasregisteredbroker-dealersinthesellingstockholderstableinthesectiontitled"SellingStockholders"aredeemedtobeunderwriters.Asaresult,anysellingstockholders,broker-dealersoragentswhoaredeemedtobe"underwriters"withinthemeaningofSection2(a)(11)oftheSecuritiesActwillbesubjecttoprospectusdeliveryrequirementsoftheSecuritiesActandtocertainstatutoryliabilities,including,butnotlimitedto,thoseunderSections11,12and17oftheSecuritiesActandRule10b-5undertheExchangeAct.Inaddition,anyprofitsonthesaleofthecommonstockbyanysellingstockholders,broker-dealersoragentsdeemedtobe"underwriters"andanydiscounts,commissionsorconcessionsreceivedbyanysuchbroker-dealeroragentsmaybedeemedtobeunderwritingdiscountsandcommissionsundertheSecuritiesAct.
Anycompensationpaidtounderwriters,dealersoragentsinconnectionwiththeofferingofthecommonstockunderthisprospectus,andanydiscounts,concessionsorcommissionsallowedbyunderwriterstoparticipatingdealerswillbeprovidedintheapplicableprospectussupplement.IncompliancewiththeguidelinesoftheFinancialIndustryRegulatoryAuthority,Inc.("FINRA")theamountofunderwritingcompensation,includingunderwritingdiscountsandcommissions,tobepaidinconnectionwithanyofferingofcommonstockpursuanttothisprospectuswillbelimitedtoanamountthatisfairandreasonable,withsuchamounttobeevaluatedbasedonthesizeandtypeofthecommonstockbeingofferedaswellastheriskassumedbytheunderwriters,dealersoragents,asthecasemaybe.Wemayenterintoagreementstoindemnifyunderwriters,dealersandagentsagainstcivilliabilities,includingliabilitiesundertheSecuritiesAct,ortocontributetopaymentstheymayberequiredtomakeinrespectthereofandtoreimbursethosepersonsforcertainexpenses.
Tofacilitatetheofferingofcommonstock,certainpersonsparticipatingintheofferingmayengageintransactionsthatstabilize,maintainorotherwiseaffectthepriceofthecommonstock.Thismayincludeover-allotmentsorshortsalesofthecommonstock,whichinvolvethesalebypersonsparticipatingintheofferingofmorecommonstockthanweresoldtothem.Inthesecircumstances,thesepersonswouldcoversuchover-allotmentsorshortpositionsbymakingpurchasesintheopenmarketorbyexercisingtheirover-allotmentoption,ifany.Inaddition,thesepersonsmaystabilizeormaintainthepriceofthecommonstockbybiddingfororpurchasingcommonstockintheopenmarketorbyimposingpenaltybids,wherebysellingconcessionsallowedtodealersparticipatingintheofferingmaybereclaimedifcommonstocksoldbythemarerepurchasedinconnectionwithstabilizationtransactions.Theeffectofthesetransactionsmaybetostabilizeormaintainthemarket
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priceofthecommonstockatalevelabovethatwhichmightotherwiseprevailintheopenmarket.Thesetransactionsmaybediscontinuedatanytime.
Ifindicatedintheapplicableprospectussupplement,underwritersorotherpersonsactingasagentsmaybeauthorizedtosolicitoffersbyinstitutionsorothersuitablepurchaserstopurchasethecommonstockatthepublicofferingpricesetforthintheprospectussupplement,pursuanttodelayeddeliverycontractsprovidingforpaymentanddeliveryonthedateordatesstatedintheprospectussupplement.Thesepurchasersmayinclude,amongothers,commercialandsavingsbanks,insurancecompanies,pensionfunds,investmentcompaniesandeducationalandcharitableinstitutions.Delayeddeliverycontractswillbesubjecttotheconditionthatthepurchaseofthecommonstockcoveredbythedelayeddeliverycontractswillnot,atthetimeofdelivery,beprohibitedunderthelawsofanyjurisdictionintheUnitedStatestowhichthepurchaserissubject.Theunderwritersandagentswillnothaveanyresponsibilitywithrespecttothevalidityorperformanceofthesecontracts.
Withrespecttotheofferingandsaleofthecommonstockunderthisprospectusbythesellingstockholders,wemayagreetoindemnifyeachsellingstockholderandanyunderwriterforsuchsellingstockholder(asdeterminedintheSecuritiesAct)againstspecifiedliabilities,includingliabilitiesundertheSecuritiesAct.Thesellingstockholdershaveagreedtoindemnifyusagainstspecifiedliabilities,includingliabilitiesundertheSecuritiesAct.Inaddition,wemayagreetopaysubstantiallyalloftheexpensesincidentaltotheregistration,underwrittenofferingandsaleofthecommonstockbythesellingstockholderstothepublic,includingthepaymentoffederalsecuritieslawandstateblueskyregistrationfeesandthereasonablefeesanddisbursementsofonecounselforthesellingstockholders,exceptthatwewillnotbearanybrokers'orunderwriters'discountsandcommissions,feesandexpensesofcounseltounderwritersorbrokers,transfertaxesortransferfeesrelatingtothesaleofsharesofourcommonstockbythesellingstockholders.
Theunderwriters,dealersandagentsmayengageintransactionswithus,orperformservicesforus,intheordinarycourseofbusinessforwhichtheyreceivecompensation.
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LEGAL MATTERS
Unlessotherwiseindicatedintheapplicableprospectussupplement,certainlegalmattersinconnectionwiththeofferingandthevalidityofthecommonstockofferedbythisprospectus,andanysupplementthereto,willbepasseduponbyO'Melveny&MyersLLP.
EXPERTS
Theconsolidatedfinancialstatementsandmanagement'sassessmentoftheeffectivenessofinternalcontroloverfinancialreportingincorporatedbyreferenceinthisprospectusandelsewhereintheregistrationstatementhavebeenincorporatedbyreferenceinrelianceuponthereportsofGrantThorntonLLP,independentregisteredpublicaccountants,upontheauthorityofsaidfirmasexpertsinaccountingandauditing.
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15,000,000 Shares
Common Stock
PROSPECTUS SUPPLEMENT
BofA Securities
February 18, 2020