AZZ falls on pricing $280 mln stock offering

AZZ

26/04/2024 14:23

** Shares of metal coatings services firm AZZ  AZZ.N  down
3.4% at $70.75 premarket after follow-on priced
    ** Fort-Worth, Texas-based co late Thurs said sold 4 mln
shares at $70 for $280 mln gross proceeds
    ** AZZ shares on Thurs fell ~11% to $73.24, their biggest
one-day decline since Oct 11, 2022, after co launched the
offering
    ** Co to use net proceeds to redeem all of its 6% Series A
convertible preferred stock, which was issued to PE firm
Blackstone  BX.N  to fund May 2022 acquisition of precoat metals
business of Carlyle-backed  CG.O  Sequa
    ** Post offering, AZZ has ~29.1 mln shares outstanding
    ** On Tues, shares closed up 8.4% at $82.93 after co posted
Q4 beat, saying it would use cash flow from operations to
further deleverage its balance sheet
    ** Shares up 26% YTD and have doubled over the past 12
months through Thurs. Stock hit intra-day record high of $84.52
on Weds
    ** Evercore and Jefferies are jt lead bookrunners for the
offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))