Allete lower after pricing upsized $202 mln stock offering

ALLETE

01/04/2022 12:12

** Allete Inc  ALE.N  shares down >5% on light premarket
volume after electric utility prices follow-on
    ** Duluth, Minnesota-based co late Thurs sold 3.2 mln shares
at $63 for gross raise of ~$201.6 mln  urn:newsml:reuters.com:*:nBw7fpLzxa
    ** Deal size increased from 2.95 mln shares, priced at 5.9%
discount to stock's last close
    ** JP Morgan, BofA, RBC and Wells Fargo jt bookrunners
    ** Co to use net offering proceeds to fund $165.5 mln
all-cash acquisition of solar developer New Energy Equity, which
was announced a month ago  urn:newsml:reuters.com:*:nBw8D3hqHa
    ** ALE has ~53.3 mln shares outstanding and about same
amount of public float, per Refinitiv data
    ** Shares gained 6.4% in Mar as investors piled into
defensive sectors, sending S&P Utilities  .SPLRCU  to record
peak  urn:newsml:reuters.com:*:nL2N2VY1MZ

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))