RBC Bearings bounces after co secures about $1 bln capital raise
22/09/2021 16:23
** RBC Bearings Inc ROLL.O shares up 6.3% to $201.31 after
co prices stock offerings
** Precision bearings maker sells 3 mln shares at $185 and 4
mln shares of Series A 3-yr mandatory convertible preferred
stock at $100 urn:newsml:reuters.com:*:nBw72mxqba
** Co estimates combined net proceeds from offerings of
~$913 mln, or ~$1.05 bln if full overallotment options are
exercised
** Mandatory convertible to pay 5% annual dividend; maximum
conversion price of $226.63 represents 22.5% premium to equity
offering price
** Co's shares on Tues closed down 12.2% at $189.30 after co
launched the offerings to fund cash purchase price for pending
acquisition of Dodge, power transmission unit of Swiss
engineering firm ABB ABBN.S urn:newsml:reuters.com:*:nL1N2QN18A
** ROLL shares on Jul 26 surged as high as $250.52, from
prior session close of $206.51, after co announced $2.9 bln buy
of Dodge urn:newsml:reuters.com:*:nL8N2P23JA
** ROLL has ~25.4 mln shares outstanding for current market
value of ~$5.1 bln, per Refinitiv data
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))